WSJ Discovers How Algos Broke The Market | Zero Hedge

December 26, 2018 by · Leave a Comment 

For years, as the market rose in seemingly uninterrupted fashion buoyed by trillions in excess central bank liquidity and algos programmed to buy any dip while frontrunning each and every buy order, virtually nobody – except for a few “fringe”, “fake news” blogs – complained about the threat posed by algo trading and the quiet but dire deterioration in market liquidity.

Now that the S&P has finally suffered its first bear market in a decade, the mass media is out in full force looking for scapegoats and, predictably, in an attempt to deflect attention from the biggest, and only, culprit behind each and every bull-bust cycle namely the US central bank, has focused on “computerized trading.”

In a front page article, the WSJ is out today with “Behind the Market Swoon: The Herdlike Behavior of Computerized Trading“, in which a bevy of WSJ authors, among which the paper’s new ‘Fed whisperer‘ Nick Timiraos (who may or may not have been tasked with delivering a piece drawing attention from the inhabitants of the Marriner Eccles building), write that “behind the broad, swift market slide of 2018 is an underlying new reality: Roughly 85% of all trading is on autopilot—controlled by machines, models, or passive investing formulas, creating an unprecedented trading herd that moves in unison and is blazingly fast.”

Source: WSJ Discovers How Algos Broke The Market | Zero Hedge

Who Regulates Bitcoin Trading? No U.S. Agency Has Jurisdiction – WSJ

December 26, 2017 by · Leave a Comment 

Investors are frantically trying to learn everything they can about bitcoin—and so are regulators. Furious trading in cryptocurrencies is testing many in the Trump administration who are eager to embrace financial innovation, after nearly a decade of tighter clamps on risk-taking put in place after the 2008 financial crisis.

Source: Who Regulates Bitcoin Trading? No U.S. Agency Has Jurisdiction – WSJ


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