Posthuman black swans

High-speed trading could speed up the generation of Black Swan events, according to Tech Review.  Automated trading moving at speeds faster than human reaction time (<1 second), or high-frequency trading (HFT)  has been breeding sudden price shocks, or “flash crashes”.

How quickly?

flash crashes and rises are not at all rare. Johnson and co found over18,000 of them, that’s more than one a day on average.

On the one hand, this is something to watch.  Regulations could be forthcoming.

On the other, what a fascinating development!  Will these quick crashes become normal, expected, and part of doing business? and therefore no longer be black swans per se?

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