Twitter Hoax Shows Growth in Algorithmic Trading

By Geoffrey Rogow

Wall Street Journal wonders who might have been behind the April 2013 hoax-driven “tweet crash” which sent the Dow Jones Industrial Average into a short-lived 145-point plunge. If it wasn’t driven by a major high-speed trading outfit, then by whom? Alexei Miller, Executive VP at DataArt, shares his opinion.

“…the hoax-driven “tweet crash” could go down as a turning point in the power dynamics of trading. It was perhaps a sign that technology has now handed to smaller trading shops the kind of capacity to unleash market moves that previously belonged solely to high-powered hedge funds and other hefty institutions,” writes Rogow.
“Technology in trading has developed to a state where experimenting is very cheap. It used to be the case that a new way of analyzing your portfolio was a year-long project and you had to commit to writing some big checks before you bought anything,” said Alexei Miller, executive vice president of DataArt, a custom software development company. “But now, you have an idea, and for $10,000 you can see if it works out…That used to cost a million bucks.”

View original article or download PDF

Contact Us

Enter your information below, and we'll respond to you directly

Please, check Google ReCaptcha

Thank You

Your request was submitted.

We'll respond to you shortly.

return to the site
Welcome
We are glad you found us
Please explore our services and find out how we can support your business goals.
Let's Talk