Salmon warns of algo risks
BoE's Chris Salmon cautions against lack of transparency brought in by automated high-frequency trading
Chris Salmon, the Bank of England’s executive director for markets, has said that while the rise of automated high-frequency trading has improved the day-to-day liquidity and efficiency in foreign exchange, equity and futures markets, it has also reduced overall transparency and could hamper efficient price discovery.
“The rise in automated high-frequency trading has… increased the incentive for market participants to protect information that could signal their trading intentions. This is to
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