[This message was posted by Stephen Edge of AsiaEtrading.com <supp...@asiaetrading.com> to the "Algorithmic Trading" discussion forum at http://fixprotocol.org/discuss/31. You can reply to it on-line at http://fixprotocol.org/discuss/read/be84a366 - PLEASE DO NOT REPLY BY MAIL.]
Considering the sheer volume of trades/orders generated by algos a tool to monitor what is going on will be necessary. It can't be done by humans or who would bare the cost? I believe its the lack of tools and the evolution of this type of trading that is way ahead of the ability to monitor what these algos are doing. They are unpoliced and probably will be for sometime. > Indeed, in my point of view > > The algorithms must not be controlled by algorithms, but the market > monitoring or risk management that should be a completely independent > infrastructure. > > > Regards > > Jaime Romanini > > > > > It's an interesting, and reasonable, question, but it doesn't make > > sense to position this as a problem with the experience level of the > > users of the algorithms - it seems to me that this is more a question > > of needing better risk management capabilities on the side of the > > systems that are interacting with the algorithms. > > > > > May 7, 2010 Katherine Heires @ securitiesindustry.com > > > > > > While trading algorithms are regularly praised for their speed and > > > efficiency, a growing contingent of professional traders, financial > > > engineers, consultants and academics say they are being misused, or > > > are faulty from the start. Their answer? Establish best practices > > > and increase training to keep algorithms from doing more damage > > > than good. > > > > > > The impetus for the movement is the fear that the availability of > > > sophisticated trading strategies to a wider audience with varying > > > levels of expertise could cause havoc in the markets--and already > > > has, in the view of many.(...) [You can unsubscribe from this discussion group by sending a message to mailto:unsubscribe+100932...@fixprotocol.org] -- You received this message because you are subscribed to the Google Groups "Financial Information eXchange" group. To post to this group, send email to fix-proto...@googlegroups.com. To unsubscribe from this group, send email to fix-protocol+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/fix-protocol?hl=en.
