Embed intelligent agents within the trading architecture to detect intentional or unintentional severe market manipulations/destabilizations arising from high frequency trading or malicious tampering. Such agents would be dormant until certain thresholds are crossed, and then would execute a series of escalating responses to safeguard market stability.
Emerging intelligent autonomous algorithmic threats and an increase in volume and risk associated with high frequency trading algorithms creates a potential threat environment within the electronic functioning of trading markets themselves. Firewall safeguards are not a sufficient risk mitigation strategy considering the level of risk and potential negative impacts.Add Improvement
Implementation of autonomous market safeguards would be expected to, if made public, generate both debate and skepticism about the effectiveness and unintended consequences of the approach, as well as to reassure markets in times of turmoil.