Traders Convicted For Figuring Out Auto Trading Algorithm; How Is That Illegal?
from the no-whammies dept
Slashdot points us to the story of how two Norwegian day traders have been convicted and given suspended jail sentences for outsmarting an automated computer trading system, enabling them to make money. The details are not entirely clear, but from what’s in the article, it sounds like they observed some patterns in the way the system responded to certain trades, and then they took advantage of that. Of course, that’s exactly what automated computer trading systems, themselves, are supposed to do. They’re supposed to notice patterns in trading and take advantage of that. So, would it have been illegal for the same automated trading system to notice patterns in certain human trades and take advantage of it?