Rise of the Stock Market Machines: Human Intervention Impossible
By Hal M. Bundrick
NEW YORK (MainStreet) -- It's an invisible stock market lorded over by a new machine ecology executing trades at a speed undetectable by human beings. Researchers say this subsecond market activity shows "an intriguing correlation with the onset of the system-wide financial collapse in 2008" and generates a hidden universe of competitive machines so advanced "humans lose the ability to intervene in real time."
And this nano-market mastered by aggressive, high frequency trading bots crashed over 18,000 times from 2006 to 2011.
Led by Neil Johnson, a University of Miami physics professor, a group of researchers analyzed millisecond-scale stock market data from Nanex and identified large numbers of subsecond "ultrafast extreme events" (UEEs).
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