Trading Faster Than The Speed Of Reality

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http://techcrunch.com – Editor’s note: Michael Wellman is a professor of computer science and engineering at the University of Michigan College of Engineering.  At 1:07 p.m. on April 23, a hijacked AP Twitter account falsely reported an attack on the White House. Seconds later, major US stock indexes started to fall. They were down 1 percent by the time the tweet was publicly identified as bogus three minutes later. And in another three minutes, the markets had recovered to pre-tweet levels. The quick plunge appears to have been triggered or exacerbated by computer algorithms that automatically trad (IT news)