The number of human traders employed in the financial markets is set to fall dramatically over the next ten years as banks and brokers become increasingly reliant on computer-based algorithms to run their trading operations. This is one of the early conclusion of the UK Government's Foresight panel, which was assembled to study the implications of high frequency trading on the economy. The Foresight project team has worked with a panel of leading academics and industry participants to produce a working paper exploring the impact of computer trading on financial stability and market quality. While economic research ... (full story)