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40zr-40
Fi

Finance

Severity6/10

Financial Flash Crash

Sudden market collapses caused by unforeseen interactions between high-frequency trading algorithms, generating extreme systemic volatility.

Periodic recordEconomyarXiv2022

Kang Gao, Perukrishnen Vytelingum, Stephen Weston, Wayne Luk, Ce Guo

Mitigation Strategy

Implementation of market circuit breakers, limits on high-frequency algorithmic trading, and requirements for systemic stability testing.

Atomic Number

40

Fi

Risk ID

zr-40

Severity

6/10

Severity Level

40
Economy
zr-40
Fi

Finance

Financial Flash Crash

RiesgosIA.org
Economy • #40

Financial Flash Crash

Fi
Severity Level6/10

Definition

Sudden market collapses caused by unforeseen interactions between high-frequency trading algorithms, generating extreme systemic volatility.

Mitigation Strategy

Implementation of market circuit breakers, limits on high-frequency algorithmic trading, and requirements for systemic stability testing.

Notes / Observations

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