Salmon warns of algo risks

BoE's Chris Salmon cautions against lack of transparency brought in by automated high-frequency trading

Chris Salmon at the Bank of England
Chris Salmon: "We are mindful that an aggregate reduction in transparency has the potential to hamper efficient price discovery"

Chris Salmon, the Bank of England’s executive director for markets, has said that while the rise of automated high-frequency trading has improved the day-to-day liquidity and efficiency in foreign exchange, equity and futures markets, it has also reduced overall transparency and could hamper efficient price discovery.

“The rise in automated high-frequency trading has… increased the incentive for market participants to protect information that could signal their trading intentions. This is to re

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