As reported by the WSJ’s Eva Szalay: So what’s the difference between a nerd and a geek? Apparently quite a bit for some people. But whatever you want to call them–be it nerds, geeks, pointy-heads, boffins or plain old rocket scientists–they are revolutionizing the way financial markets behave.
That has some traditional market players crying foul, warning of the potential extra risks as automated trading programs with the capacity to fire up to 500 trades a second malfunction. But still others, like Australian academic Alex Frino, say high-frequency trading firms add liquidity to markets and actually smooth out volatility.