FGS Capital's Narain: Build Algos to Fail

St Paul's Cathedral in London
Panelists at the European Trading Architecture Summit in London urge algo developers to plan for failure.

Narain, a panelist at yesterday's European Trading Architecture Summit (ETAS) in London, says that, like test-flying an airplane, there is only so much preparation that can go into building an algorithm before it must be let loose to see whether or not it flies.

That said, Narain urges firms to build algorithms with their breakdowns in mind if they are to avoid the kind of catastrophic fallouts witnessed in episodes such as the Flash Crash of May 2010 or the more recent Knight Capital algo-tradi

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