Recent prosecutions against interest rate-fixing scandal changing the structure of modern capital markets.
A recent news report finds suggests a new trend in computerized banking.
The chief executive of a currency-trading platform Molten Markets Inc. suggests traders are shifting from phone calls to computer algorithms to do foreign-exchange transactions as prosecuters crack down on cases of market fixing.
Algorithms that can help traders predict and model actions by others in networks are poised for growth as traders “shy away” from telephone deals amid heightened scrutiny in the wake of several recent scandals.
Over the last years the world’s largest banks have been prosecuted for manipulating everything from the inter-bank dealer rate, the Polish zloty and copper prices. Now that Edward Snowden has revealed the NSA can listen to anyone anywhere at any time—as well as tracking the world’s private capital flows by recording every phone call made through Bermuda—the move to a completely digital, computer-based trading network is perhaps not a surprise.
“We’re on the edge of a huge growth in algorithms,” said the CEO.
The chief executive of a currency-trading platform Molten Markets Inc. suggests traders are shifting from phone calls to computer algorithms to do foreign-exchange transactions as prosecuters crack down on cases of market fixing.
Algorithms that can help traders predict and model actions by others in networks are poised for growth as traders “shy away” from telephone deals amid heightened scrutiny in the wake of several recent scandals.
Over the last years the world’s largest banks have been prosecuted for manipulating everything from the inter-bank dealer rate, the Polish zloty and copper prices. Now that Edward Snowden has revealed the NSA can listen to anyone anywhere at any time—as well as tracking the world’s private capital flows by recording every phone call made through Bermuda—the move to a completely digital, computer-based trading network is perhaps not a surprise.
“We’re on the edge of a huge growth in algorithms,” said the CEO.
