The Treasury is looking into the practice of high-frequency trading as concerns grow that computer-generated errors could have a significant impact on the economy.
A study has been commissioned to explore the way in which traders are able to buy and sell shares, derivatives and foreign exchange in fractions of a second, according to the Financial Times. It is estimated more than a quarter of its trades on the London Stock Exchange are driven by high-frequency trading while the figure is around 60% of US equity markets. Worries about high-frequency trading were generated earlier this year with the "flash crash" in the US on 6 May, when the Dow Jones index fell 1,000 points in 20 minutes before recovering. Read more here Goldman Sachs warns ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
