After the 2010 flash crash, economists wondered whether high-frequency computerized trading might present a whole new market ecology. In Wired, SFI Professor Doyne Farmer weighs in on a recent study that concludes flash events are common and happen "at speeds so fast they don’t register on regular market records, with potentially troubling consequences for market stability."

But Farmer cautions against drawing correlations about computerized trading until more statistical analyses are done.

“It’s hard to think these things through, because nobody understands them," he says.

Read the article in Wired (February 16, 2012)

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