This animated GIF chronicles the rise of the HFT Algo Machines from January 2007 through January 2012 (credit: Nanex Research, hosted by imgur.com)

Given the the endless mind-whirling acronyms, derivatives and structures of the financial markets, we’re rarely served with a visualization that so elegantly illustrates the arrival of Wall Street’s latest innovation.

This is what high frequency trading looks like, when specially programmed computers make massive bets at lightning speed, Mother Board reports.

Created by Nanex, the GIF charts the rise of HFT trading volumes across all U.S. stock exchanges between 2007 and 2012. The initial murmur, the brewing storm, the final detonation: Not just unsettling, it’s terrifying.

As Mother Board notes, we don’t know is what the long term consequences are of all this hyper-volume as depicted by the Nanex GIF and the kind of systemic risks created from the market’s ongoing evolution from human traders to rapidfire AI. Sometimes things go wrong, a software glitch, an algorithm gone rogue and the music stops, like last week when Knight Capital lost $10 million a minute when it’s trading platform went haywire or during the infamous Flash Crash when the Dow dropped 1000 points in mere minutes.

Read the excellent full Mother Board article here.

 KurzweilAi.net

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