How algorithmic trading impacts investing

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).
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