Rogue algorithm may cause billion dollar damage in 2012 | Forex Factory

  • Rogue algorithm may cause billion dollar damage in 2012

    From mis-asia.com

    A rogue algorithm will cost a financial institution a billion dollars or more in 2012, says a newly released report by Progress Software. The software provider has announced capital markets predictions for 2012 according to which a rogue algorithm will go into an infinite loop, which cannot be shut down. "Although financial institutions have tightened risk processes to prevent human fraud, particularly after the UBS scandal this year, they are still not adequately monitoring their algorithmic trading,” said Dr. John Bates, Chief Technology Officer, Progress Software. “All it takes is one rogue algo to go into ... (full story)

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PistolDave
Dec 1, 2011 7:32pm
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Computers doing the trading. Computers monitoring the ones doing the trading. Computers guarding the ones doing the monitoring. Who guards the guards? Where does it all end?
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Trader#D340
Dec 1, 2011 5:04pm
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rogue algorithm mas a$$ the whole thing is preparing to drop!!!!!
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