Editor’s note: One of the most interesting things about the catastrophe at Knight Capital Group—the trading firm that lost $440 million this week—is the speed of the collapse. News reports describe the bulk of the bad trades happening in less than an hour, a computer-driven descent that has the financial community once again asking if their pursuit of profit has lead to software agents that are fast, dumb, and out of control. We’re posting this story in advance of its publication in Wired’s September issue because it examines how Wall St. got to the point where flash failures come with increasing frequency, and how much farther traders seem willing to go in pursuit of ever-greater speed.
Much more:
http://www.wired.com/business/2012/08/ff_wallstreet_trading/
See also:
It’s The Algorithm Stupid! Part IV – Humanity becomes redundant
http://vrritti.com/2012/04/15/its-the-algorithm-stupid-part-iv-humanity-becomes-redundant/
It’s The Algorithm Stupid! Part III
http://vrritti.com/2012/01/01/its-the-algorithm-stupid-part-iii/
It’s the algorithm stupid! Part II
http://vrritti.com/2011/11/23/its-the-algorithm-stupid-part-ii/
It’s the algorithm, stupid! Do algorithms offer the ultimate grounds for exoneration? Can they fail, or only the people writing them?
http://vrritti.com/2011/09/30/its-the-algorithm-stupid-do-algorithms-offer-the-ultimate-grounds-for-exoneration-can-they-fail-or-only-the-people-writing-them/
#OccupyWallStreet demonstrates that there are many ways to intentionally, accidentally or unconsciously but automatically disrupt the free flow of information
http://vrritti.com/2011/10/03/occupywallstreet-demonstrates-that-there-are-many-ways-to-intentionally-accidentally-or-unconsciously-but-automatically-disrupt-the-free-flow-of-information/
