Since only algorithmic traders are involved, an investigation of this type of plot would entail scrutinizing a tremendous number of order records, making it difficult to detect illegal manipulations in a traditional way. Here, the appropriate application of information 8 technology can be most effective.
To put it differently, regulators and overseers should arm themselves with technology comparable to that used by high-speed villains themselves, though there is still a long way to go in this area. The third issue, which is more technical but more profound in nature than the previous two issues, is the question of how to avoid over-reliance on high-frequency traders as liquidity providers.