Baptism by Fire
Extreme volatility in the equity markets made August a testing month for both users of execution algorithms and automated trading strategies. Leading players explain the lessons for the future to Chris Hall.
When fears of a collapse in the US sub-prime mortgage market quickly led to widespread panic in the financial markets in August, the finger of suspicion was soon pointing at some pretty familiar bogeymen. Hedge fund managers - aided and abetted by heartless, unseeing computerised trading models - were wreaking havoc, spreading contagion and putting