High-frequency trading systems – speed vs regulation

High-frequency trading systems – speed vs regulation

In their obsessive pursuit of high-value market advantage, stock traders are pushing IT to its limits – and the lawmakers don’t like it. New laws may aim to slow the systems down, but are regulators willing and able to acquire the technology they need to keep up with the City’s need for speed?

Bogus message, denial-of-service (DoS) attacks, and spam – lovely spam, wonderful spam… It may sound like everyday life on the Internet, but it’s also what’s happening in the supposedly highly regulated networks of financial exchanges as traders engage and enrage each other in a souped-up high-performance computer-driven 24/7 battle for profit.

The two worlds have even collided in recent months when the Twitter feed of a news agency was hacked and started posting fake news. Stock prices plummeted for a brief period until traders realised what was really happening; but the potential for future spates of disinformation to cause wobbles in financial systems is now proven.

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This entry was posted in Articles, Dark Pools, Events, Finance, Flash Crash, High Frequency Trading, Regulatory Updates and tagged , , , , , , , . Bookmark the permalink.

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