Discover how ‘algos’ changed the way the world’s markets work with this insightful article from the Financial Times’ US Markets Editor, Robin Wigglesworth
To many, computer-powered quantitative investors – or ‘quants’ – and high-frequency traders are wreaking havoc on markets around the world. But why have algorithms spooked fund managers, especially given that quants still relatively small players on the global market?
Several events have cemented the idea that algorithms have made markets fickler and more fragile. From sudden flash crashes like the S&P 500 crash in May 2010 to the crash in August 2015 that triggered circuit breakers designed to stop wild trading a staggering 1,300 times.
But are ‘algos’ a genuine concern or just a worry of humbled hedge fund managers, trying to cover up their own failings? Find out in this insightful FT article from Robin Wigglesworth. Download it for free today to see how algorithms have caused the global markets to evolve, and how much impact ‘algos’ have on volatility in the market.
A Dramatic Algorithmic Evolution
It’s an inescapable fact: algorithms are transforming how the world’s markets function. Discover the impact they’re having and the risks – both imagined and real – that influence markets at times of stress.
Turmoil Unnerves Investors
Recent turmoil in the markets has been attributed at times to algorithms, and this has unnerved many investors. Learn more about the ‘debacles’ that fuelled these fears.
Bogeyman or Genuine Threat?
Markets go through periods of volatility – that’s not new. What is new is the faceless bogeyman of algorithms that fund managers can blame for great volatility. Uncover the reality in this FT article.