Burn after reading: Scientists who study complex systems say that the world of nanosecond...

|By:, SA News Editor

Burn after reading: Scientists who study complex systems say that the world of nanosecond trading is much scarier than what the Street will admit to and has dire consequences for market stability. Not only is the sub-650 millisecond trading zone out of human reach, it has an ecology that has "no sound theoretical understanding." The perfect storm scenario is a wide group of algorithms converging on just a few different strategies - creating a high-frequency trading market vulnerable to uncontrollable herd behavior.