Regulators Can’t Keep Pace with Market Technology

Stripped down to its essence, the root cause of last week’s trading glitch that nearly wiped out Knight Capital Group (NYSE: KCG)  isn’t real complicated.

In a nutshell, the problem is that market regulators simply can’t keep up with advances in technology — in this case the proliferation of high frequency trading — that seek to squeeze every last bit of profit out of complex, fast-moving global markets.

The regulators try to hold their own, but the engineers and math whizzes from Stanford, Harvard, and the Massachusetts Institute of Technology are laps ahead of them.

Read more: http://www.foxbusiness.com/industries/2012/08/07/regulators-cant-keep-pace-with-market-techology/#ixzz22tY38Ort

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