20 April 2016
Speaking at The American Museum of Finance in the heart of New York’s Wall Street, Dr Gbenga Ibikunle agreed with US panelists that regulators must up their capacity to review trades in real time.
He was joined by The Economist’s American Finance Director, Patrick McCarty of Markets Operator ICAP, Cantor Fitzgerald’s Bill Nichols and Matt Trudeau, Head of Product at IEX, to discuss the risk of accelerated volatility during periods of market stress.
Many believe financial markets are becoming disconnected from economic fundamentals and investment performance is based on who has the fastest computers and access to exchanges.
Dr Ibikunle said an effective review of regulations was key to ensuring electronic trades don’t negatively affect markets, investors and the global economy. But he stressed any changes had to balance the need to maintain market efficiency.
He also argued the increasing use of technology to complete trades in less than 350 millionths of a second had already seen greater transparency increase fairness in the markets.
The event was held in partnership with the American Scottish Foundation to showcase Edinburgh’s leading academic contributions to market performance research, as part of Tartan Week – a celebration of US-Scottish culture in New York City.