Research and analysis

Computer trading: systemic risk

Report looking at systemic risk arising from computer based trading and connections to the empirical literature on risk.

• From: Government Office for Science
• Published: 23 October 2012

Documents

Systemic risk arising from computer based trading and connections to the empirical literature on systemic risk (DR29)

Ref: BIS/12/1062

PDF, 226 KB, 19 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email [email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

Financial markets have evolved to become complex adaptive systems which rely on the high communication speeds and processing power of digital systems. Their failure could cause severe disruption to financial services and possibly the wider economy.

This report provides links between the literature on systemic risk and computer-based trading and makes proposals as to how we might develop a more unified approach to systemic risk research.

This review was commissioned as part of the Foresight project on the future of computer trading.

Published 23 October 2012