Financial Markets Are At Risk Of a ‘Big Data’ Crash

More hash crash-type events, which are caused by a single erroneous data point, are disasters waiting to happen.

More hash crash-type events, which are caused by a single erroneous data point, are disasters waiting to happen.

Maureen O’Hara from FT reports that regulators and investors are struggling to meet the challenges posed by high-frequency trading. This ultra-fast, computerised segment of finance now accounts for most trades. HFT also contributed to the “flash crash”, the sudden, vertiginous fall in the Dow Jones Industrial Average in May 2010, according to US regulators. However, the HFT of today is very different from that of three years ago. This is because of “big data”.

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One Response to Financial Markets Are At Risk Of a ‘Big Data’ Crash

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