The "automated trading systems at high frequency (high-frequency trading) permit the execution, and automated in microseconds, of millions of orders to trade (through mathematical algorithms) simultaneously on the various financial markets ( stocks, bonds, derivatives, commodities).
companies that operate in high frequency trading "can gather information," insider "strategies of investors, lead to unjustified increases in the prices of securities traded, affect the volatility of the markets, sending abnormal signals to the economy. The tool opens an era of "insider trading automatic" with orders automatically generated by the purchase of high-frequency trading software and deleted simultaneously (so-called "flash orders"), useful to confuse institutional investors, as well as any program that observes the movements of key players (like those of the Supervisory Authority).
addition to the areas of increased volatility and potential manipulation of stock markets, the pro-cyclical effect of the high-frequency trading tends to amplify any excess (of supply or demand) the business cycle.
In particular, in a logic of bear bags, a fall caused by vibrations produced by the automated trading could raise implications adverse economic and financial cycle is the country whose stock market has been hit by falls (amplified from high-frequency trading) and of all the foreign countries where they reside companies listed in the stock market hit, whose capitalization has been impaired.
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