Quant Investing: What are the dangers of the Black Box?
The strong industry consensus is that computers caused that Monday afternoon “flash crash.” Algorithmic trading, where computers automatically pick stocks based on complex pre-programmed instructions, “definitely had an impact” on the market swing that day, according to U.S. Treasury Secretary, Steve Mnuchin.
Photo by Esther Jiao on Unsplash
Rethinking the Order Book: The March Towards Automated Markets
Even as the digitization of trading has evolved and blockchain changes the financial landscape, existing market models have been unimaginatively carried over to electronic asset exchanges and now crypto markets. As a result, technology gaps between traders remain economically significant while the current market design perpetuates (and in some cases exacerbates) problematic features of the former system.
Citi hires derivatives duo from rival Goldman Sachs
Citigroup has made three appointments within its electronic trading business, including two hires from rival Goldman Sachs, amid a surge in futures trading this year.