, Columnist
History of Algorithmic Trading Shows Promise and Perils
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When machines replace seasoned traders and market makers, mistakes can occur at dizzying speed.
It happened with the notorious “flash crash” on May 6, 2010, and again on Aug. 1 this year, when software at Knight Capital Group Inc. malfunctioned, triggering unintended trades and leading to a $440 million loss for the company.