As more and more tradign volume is carried by algorythmic trading we can ask if they do follow the three laws of the Robotics.
A robot may not injure a human being or, through inaction, allow a human being to come to harm.The Three Laws of Robotics ( shortened to The Three Laws or Three Laws) are a set of invented by Isaac Asimov. The rules were introduced in his 1942 short story "Tunaround". The Three Laws are:
1. A robot must obey the orders given to it by human beings, except where such orders would conflict with the First Law.
2. A robot must obey the orders given to it by human beings, except where such orders would conflict with the First Law.
3. A robot must protect its own existence as long as such protection does not conflict with the First or Second Laws.
The joint report "portrayed a market so fragmented and fragile that a single large trade could send stocks into a sudden spiral,"[10] and detailed how a large mutual fund firm selling an unusually large number of E-Mini S&P 500 contracts first exhausted available buyers, and then how high-frequency traders (HFT) started aggressively selling, accelerating the effect of the mutual fund's selling and contributing to the sharp price declines that day.
Algorythms were deeply involved in this process. Did their actions conflicted with the law of the robotics? And there is one more law of the robotics. The most important one.
In our terms the robots may not harm the market.
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От 23 септември 2011 |