Abstract
Currently, there is a consensus among practitioners, industry veterans and academic researchers that the use of the state-of-the-art technology in financial sector including trading is inevitable, and HFT is generally beneficial. On the other hand, our collective memory reminds us that any intentional or unintentional misuse of HFT has the risk of market collapse as experienced during the Flash Crash of May 6, 2010. This paper provides an overview of what happened in the financial markets within a few minutes on that day and the collapse happened with its historically unmatched impact. Although the underlying reasons that triggered the Flash Crash are well understood by traders, regulators and researchers and tangible progress has been achieved since then, but still there are crucially significant open issues requiring more sophisticated policies, procedures and regulations to build more robust, fair and transparent financial markets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
