HFT allows firms to submit orders and execute trades (using algorithms) and to interact with markets in unpredictable ways, causing price pressure and dislocation of financial markets (albeit momentarily). Page 7 of 11  At the domestic level, the SARB’s involvement in monitoring FinTech innovation started in 2013 when it joined an informal intergovernmental working group (IWG) in our jurisdiction.
For another thing, it generated a lot of information about some types of intermediaries but much less on others (including the shadow banking system). This made it difficult to understand fully the pro-cyclical behaviour of the system in the aggregate.