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July 10, 2005

Comments

phil jones

Although the stock-exchange *did* shut down trading by "black-box" automated systems for several hours (according to BBC radio 4's Moneybox programme, last night)

This was on the grounds that the information received by such automated trading systems wouldn't be up-to-date, and that such systems tended to exacerbate volatility.

This might have had some damping effect.

John Robb

The automatic trading systems were critical to the black Monday debacle in 1987. They always shut them down in periods of volatility. These programs trade based more on price movement than complex information tied to facts on the ground.

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