economy
'Kill switches' could be needed for AI-powered trading, BoE official says
Technology could make markets more volatile through ‘herding behaviour’, Sarah Breeden tells ECB conference
TL;DR
- Technology, particularly AI, could lead to increased market volatility.
- This volatility might stem from 'herding behaviour' among market participants.
- Sarah Breeden, a Bank of England official, suggested the need for 'kill switches' for AI-powered trading.
- The comments were made at an ECB conference, highlighting international financial concerns.