But the high-speed nature of HFT can mean that positions can accumulate rapidly, meaning that the PBs need to have rapid monitoring technology to manage their risk effectively. One reflection of this is the recent development of “kill switch” technology to cut off clients’ access to multiple markets simultaneously if unacceptable positions are being accumulated.
Andy Haldane highlights the risk of this, given that trading is occurring faster than human comprehension.3 One concern that the report highlights in this regard is whether PBs are adequately pricing the risk in the provision of their services.