We haven't found a way to prevent AI-driven automated trading bots from destabilizing smaller financial markets during periods of low liquidity.
open
Global / Unspecified, Global
Automated trading algorithms can sometimes trigger rapid, extreme price swings in smaller or less liquid markets, especially during unusual conditions, without any single actor intending market harm. Building safeguards against this kind of systemic risk remains incomplete.
Citation ID: WS00866
Title: We haven't found a way to prevent AI-driven automated trading bots from destabilizing smaller financial markets during periods of low liquidity.
URL: https://www.worldsolve.org/index.php?api=problem&id=866