The closing auction scheme is commonly used in other developed markets. Meanwhile, the introduction of a volatility control mechanism has the strong backing of asset managers.
Fidelity Management & Research's head Asia trader sees better understanding of market microstructure as key to navigating markets increasingly affected by price spikes and 'flash crash'-type events.
Institutional investors and asset managers are increasingly using algo strategies and DMA technology in a structural shift, notes JP Morgan's Michael Green.
The ‘flash crash’ in New York of May 6 highlights not the danger posed by high-frequency quants, but the extent to which markets (including Asia’s) depend on them.