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16 - Adequately Supervising the Overseers of Algo Bots

Published online by Cambridge University Press:  02 October 2020

Gregory Scopino
Affiliation:
Georgetown University, Washington DC
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Summary

If I were to paraphrase the legal concept outlined in this chapter with a slogan, it would be this: “Keep a watchful eye on your computerized trading systems because oversight failures and carelessness can lead to culpability.” This chapter analyzes a potential way to hold firms accountable for the actions of algo bots despite the fact that trading bot software programming cannot – in many circumstances under existing law – provide sufficient evidence of the culpable mental states required by causes of action for financial fraud and price manipulation. As discussed earlier, the majority of trading decisions in large segments of the futures markets are made by ATSs and related algo bots acting without specific human direction.

Type
Chapter
Information
Algo Bots and the Law
Technology, Automation, and the Regulation of Futures and Other Derivatives
, pp. 391 - 410
Publisher: Cambridge University Press
Print publication year: 2020

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