ABC Radio National – Background Briefing

Attack of the algorithms

Robot Traders – High-Frequency Trading

There’s mounting concern in the world’s financial markets about the influence of High Frequency Trading.

This so called ‘robot trading’ was responsible for the Flash Crash of 2010 and in August this year, the US company, Knight Capital, lost $440 million when a trading algorithm ‘went rogue’.

Robot traders are dominating stock markets using high speed computer algorithms. Human traders and government regulators can’t keep up, and markets could be one programming glitch away from the next big crash. Stan Correy investigates.

Program Audio

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ABC Background Briefing is daring narrative journalism: Australian investigations with impact. Our award-winning reporters forensically uncover the hidden stories at the heart of the country’s biggest issues.

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