How Algorithms Can Affect Commodities Trading

Regulators have had their sights on automated trading since the Flash Crash in May of 2010 when stock prices swooned 9% in mere minutes. In August of 2015, the same phenomenon occurred again as the price of exchange-traded funds (ETFs) became unhinged from their underlying value due to automated trading. Recent research has shown that such flash crashes may actually be occurring much more frequently on a smaller scale.