Central Banking

Research can help BoE keep pace with automation – Salmon

As algorithms continue to make markets faster, regulation will need to be adapted, says BoE director; academic research will aid central bank efforts
chris-salmon-2014
BoE excutive director for markets, Chris Salmon

The Bank of England’s executive director for markets has said enlisting the help of academics would help the central bank keep pace with the regulation of faster markets.

“There is enormous potential for varied and interesting research in the area of fast markets… and here we need help from the academic community,” Chris Salmon said today (October 6) in a speech assessing the impact of greater automation of trading on financial markets.

In his analysis, Salmon noted the introduction of “new technology-focused, smaller, non-bank market participants” has markedly increased the pace at which markets operate over the past few years.

These firms, he said, use specialised algorithms to execute and route orders at high speed. But with increased speed comes increased risk, and for the BoE to keep up research is key.

“As markets evolve no doubt new topics and questions will present themselves. I encourage those of you with an interest in this area to keep running with it; your input is of great value to us,” Salmon said.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

FedNow – at last

The instant payment system might help fix the US’s rusty payment rails, but it also faces competition, says Dave Birch

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.