Predatory Algorithms On the Prowl

The nature of the equity markets in both the US and Europe has changed dramatically over the last two decades, with the vast majority of trading now taking place electronically. Between 60 and 75 percent of the New York Stock Exchange’s (NYSE) daily trading volume is estimated to be automated, and the London Stock Exchange (LSE) says that for the first quarter of 2010, 33 percent of its order book executions in cash equities by number of trades—32 percent by value traded—had a high-frequency