Cover story & special report & for The Review magazine (Chartered Institute for Securities and Investment), Q3 2018
… extract only – full article only available in the Q3 2018 print edition (link is to pdf of magazine, article on page 31).
The full article includes:
- an overview and analysis of the causes of some of the most high profile ‘flash crashes’ in recent years – the 2007 ‘quant quake’, the 2010 ‘flash crash’, and the 2016 ‘pound flash crash’;
- a summary of the various types of algorithmic trading in use today – from cost saving and (sometimes) predatory ‘high frequency trading’ to the use of alpha-seeking sophisticated machine learning techniques;
- expert overviews of the pros and cons of algorithmic trading and how the dangers might be addressed;
- a short case study of the ‘hound of Hounslow’, an independent trader based in London who has pleaded guilty to wire fraud and spoofing – and who has been accused by US regulators of being a major cause of the 2010 flash crash (heavily disputed by some academics).