The Bats Affair: When Machines Humiliate Their Masters

Photograph by Andrew Burton/Getty Images

The spectacularly botched initial public offering of Bats Global Markets on March 23 is so rich in irony that it’s difficult to know where to begin. What’s far less amusing is the prospect that the current era of high-frequency trading, in which powerful computers sift through massive information flows in search of price discrepancies and split-second trades, will bring even more episodes of market mayhem far more costly to investors and the broader economy.

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