THE NEXT ROGUE ALGO

摘要

While the dust has settled on the Flash Crash of 2010, the specter of a similar crash still hovers over the industry. There is ongoing debate over algorithmic trading and what regulatory safeguards are necessary to stop a rogue algo from setting off another chain reaction that ripples through the entire equity marketplace. Regulators are concerned that an automated trading program — an algorithm, specifically — could incite another flash crash similar to the events of May 6, 2010, when the Dow dropped nearly 1,000 points and then bounced back within 20 minutes. In a speech this past November, SEC head Mary Schapiro said her agency is zeroing in on high-speed algorithms that have the potential to "go crazy."