Imagine the applications and implications of robotics and artificial intelligence in 2045

Intelligent Neuromorphic Agents to Safeguard Domestic Stock Markets

Describe your idea

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.

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1 year ago
Echo said
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A first order approximation would be a time filter [...]
A first order approximation would be a time filter. Prices could be constrained to change only every minute. I am not sure how this might be implemented. Another, simple fix would be a micro tax on transactions. Something like 0.001% on every trade. Only algorithms get burned.
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What makes this idea new or different?

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.

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What will be the implications of this idea?

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.

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1 year ago
Echo said
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Obviously, this could be flipped on its head. A su [...]
Obviously, this could be flipped on its head. A sufficiently smart government AI could reverse engineer private purchasing algorithms and trigger a crash in adversary markets. Impoverish that nation and making a clandestine profit.
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What other players said

1 year ago - Echo said
Describe your idea
0
Open Close
A first order approximation would be a time filter [...]
A first order approximation would be a time filter. Prices could be constrained to change only every minute. I am not sure how this might be implemented. Another, simple fix would be a micro tax on transactions. Something like 0.001% on every trade. Only algorithms get burned.
1 year ago - Echo said
What will be the implications of this idea?
0
Open Close
Obviously, this could be flipped on its head. A su [...]
Obviously, this could be flipped on its head. A sufficiently smart government AI could reverse engineer private purchasing algorithms and trigger a crash in adversary markets. Impoverish that nation and making a clandestine profit.

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Inspired by

Margin Trader Bombs – Intelligent agents to destabilize, sow doubt in emerging stock markets
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