Another Algo Goes Berserk …

Following the recent incident with Knight Capital where one of their algo’s caused hovoc – buying $2.6M worth of stock every second!!, it appears that RBS had a similar issue on Monday when one of their algo’s trading the Euro/Swiss Franc went berserk.

Given the rise in algo trading it would seem likely that this trend of algo’s going berserk is likely to continue/increase. Ray Kurzweil has an interesting post on the rise of algo’s on Wall Street, the suggestion being that high frequency quoting is the big issue, not high frequency trade per se.

DxWer

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~ by kevinsmi on August 9, 2012.

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