Black-box traders need transparency, says quant veteran

While high-frequency trading has brought efficiencies to stock markets through lower commissions and narrower spreads, the ability of some traders to cause dramatic spikes in stock performance suggests regulation and transparency around black-box investors is required. Brian Brown, once pan-Asia head of systematic trading at Morgan Stanley in Hong Kong, says there is complete transparency around holders of stock, but none around traders of stock. The top-10 shareholders of stocks are …