9 May 2013
Twitter Hoax Proves Growth in Algo Trading
by Phil Albinus
FierceFinanceIT picked up the quote by Alexei Miller in the The Wall Street Journal on Twitter Hoax and algorithmic trading, and ran its own story.
“A few weeks have passed since a bogus tweet from a hijacked Twitter account sent markets in a dive for a few frantic moments. The prank revealed many things about our markets, some of them bad and some rather reassuring.
While the markets did indeed dive 145 points, they soon recovered when the news was confirmed to be bogus…. On the downside, we still have no idea who unleashed the tweet and what safeguards the Associated Press has since put in place to make sure this never happens again. …According to some industry observers, we may never know.
"Technology in trading has developed to a state where experimenting is very cheap. It used to be the case that a new way of analyzing your portfolio was a year-long project and you had to commit to writing some big checks before you bought anything," Alexei Miller, executive vice president of DataArt, tells the Wall Street Journal. "But now, you have an idea, and for $10,000 you can see if it works out…That used to cost a million bucks."