When intelligent algorithms start spoofing each other, regulation becomes a science
June 29, 2016  International Business Times

What’s to stop intelligent algorithms, programmed to make a profit, from learning to collude with one another in ways which bend market rules? Such a scenario would require regulatory oversight from the very cutting edge of computer science.

The idea of artificial intelligence manipulating outcomes in the real world and then exploiting these on the markets is bestseller material. But there’s fascinating scope for this to actually happen as computing power increases and algorithms get smarter.

Someone who has thought about this a lot is Anthony Amicangioli, CEO and founder of Hyannis Port Research. His company developed Riskbot which has been described as “a supercomputer that watches supercomputers”; a (black) box that sits between the trading firm and the exchange to prevent erroneous trades going through to market.