An emphasis on speed and a lack of security makes automated trading in financial markets ripe for exploitation and fraud, a security researcher warned today.
Most stock trades in the U.S. and many around the world in general are now made by data-crunching computers that buy and sell stocks in microseconds--something that used to take human traders minutes to do. With these algorithm-based, high-frequency trades a fraction of second can be worth millions of dollars for an investor. (See CBS 60 Minutes report on this.)
In the push for greater speed and thus higher profits, security is sacrificed, James … Read more