Mon, 05 Dec 2011 03:12:05 GMT - High Frequency Trading Review
The software maker also warns swap execution facilities could be the epicenter of another crash, and that emerging markets will benefit from Volcker Rule “escapees.”
By Justin Grant
Business software provider Progress Software is making a number of dire forecasts for 2012, including a prediction that a rogue algorithm will cost some financial institution at least $1 billion, and that an "Occupy High-Frequency Trading" movement will commence.
Progress said it expects an algorithm somewhere to go into an infinite loop, taking on an un-hedged and irreversible position that some firm will be powerless to shut down, causing unprecedented damage.
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