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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