Nanosecond Trading Could Make Markets Go Haywire →
“There’s this whole world below 650 milliseconds. It’s like landing on another planet,” said Neil Johnson, a complex systems specialist at the University of Miami and co-author of the study, released Feb. 7 on arXiv. “It’s an enormous part of the market which is out of human reach. We have a glimpse of the kind of ecology that’s going on down there.”
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“We are certainly witnessing one of the major transitions in the history of financial markets,” said automated trading researcher John Cartlidge of the University of Bristol, who was not involved in new study. “Economic theory has always lagged behind economic reality, but now the speed of technological change is widening that gap at an exponential rate. The scary result of this is that we now live in a world dominated by a global financial market of which we have virtually no sound theoretical understanding.”
