As the technologies used by the financial markets grow more sophisticated, so too do the potential disruptions to trading activity and the broader business world.
The phrase “stock trade” used to conjure an image of a frenzied horde of humans shouting at each other on exchange floors. But these days, many of those trades are handled by silent computers that perform the actions in microseconds. The advent of high-frequency trading powered by data-crunching machines means trade orders get filled more quickly, often with lower transaction costs for investors, supporters say.
But such automated technology also brings risks to the investing world—from new avenues for hackers and fraudsters to wreak havoc or game the system, to potential glitches that could wipe out billions of dollars in market value in minutes.
That’s where companies like Hyannis Port Research see an opportunity to sell technology that is, essentially, “supercomputers that watch supercomputers” for security and regulatory compliance purposes.READ FULL ARTICLE