The latest installment of Tim Harford's BBC/Open University podcast (RSS) More of Less has a fantastic and chilling look at the world of high-frequency automated stock trading, where warring algorithms execute millions of trades in an eyeblink. The story's jumping-off point is Knight Capital, whose faulty algorithm hemorrhaged $10,000,000 per minute, ultimately costing the company nearly half a billion dollars. But from there, Harford and co do a great series of examples trying to convey the sheer velocity of these markets. I've been following this stuff reasonably closely and had an abstract sense of it all, but this brought it home for me so firmly that it raised goosebumps.
Last week Knight Capital lost a lot of money very quickly. It was the latest chapter in the story of something called ‘high frequency trading’. Investors have always valued being the first with the news. But high frequency trading is different: algorithms execute automatic trades, conducted by computers, at astonishing speeds. We ask: is the rapid growth of high frequency trading progress, or – as some think – a threat to the stability of the entire financial system?
BBC - Podcasts - More or Less: Behind the Stats
When estimating his net worth, Pepe the Cheeto is apt to include a multibillion dollar valuation for the “Trump” brand-name; but new Trump Hotels will be called “Scion” hotels, “a nod to the Trump family and to the tremendous success it has had with its businesses, including Trump Hotels, while allowing for a clear distinction […]
Facebook — which accounts for as much as 75% of the traffic to popular websites — tweaked its algorithm to downrank those same publishers, who had been engaged in an arms-race to dominate Facebook users’ feeds through techniques intended to gain high rank in Facebook’s secret scoring system.
Update: According to The Verge, Facebook has verified the authenticity of the screenshot below. In what appears to be an internal Facebook post, Zuckerberg defends his company’s ongoing association with Peter Thiel — Facebook investor/board member and major donor to white-supremacist/pro-rape presidential candidate Donald Trump.
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