"Des waerelds doen en doolen, is maar een mallemoolen,"

"Des waerelds doen en doolen, is maar een mallemoolen," engraving from Het Groote Tafereel der Dwaasheid, 1720.

"The actions and designs of the world go round as if in a mill." South Sea bubble financial crisis.

Wednesday, April 13, 2011

Robots are going to the BRIC

HFT growth has supposedly peaked in Western Europe, so the industry is moving to the BRIC markets where exchanges are modernizing their systems to charm these players. The Russian legal system regarding financial transactions is incoherent and  full of contradictions and supervision of regular trading is already a challenge. If HFT is an issue in countries with sophisticated regulatory structures (notwithstanding the huge lack of funding) and has blurred the lines between cheating, betting and investing, I truly wonder how the practices associated with HFT will adapt to a weak institutional environment like Russia.

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