An academic project exploring how supercomputing and data intensive science can be tapped to aid stability, regulation, and enforcement in US markets has received $100,000 in research donations from a collection of financial firms.
This issue has long driven me nuts. Stock markets are unstable. If you gave them to a second year electrical engineer, as a Control Systems project, they would quickly look for positive feedback loops, and ways to "damp" the oscillations. This is really
standard undergraduate stuff. Amplifiers, suspension systems, and umpteen other mechanical and electrical systems tend towards instability, and engineers have a common set of tools for bringing them under control.
Has anyone tried a "low pass filter" on the stock exchanges? What if we simply slowed down trading, and applied a one or two day rolling average to the stock prices?
I cannot imagine this is rocket science. And surely it's in nobody's interest to look for solutions on the leading edge of academic research. Stock markets are mission critical; peoples' very lives are on the line when markets crash and whole countries
cut back on essential services.
We really should be trying well tested technologies first, like college text book damping filters.
Excellent salary with uncapped commissionMilton Keynes
© Finextra Research 2013