rogue algorithm brings down asx?, page-6

I am a software developer and have previusly dealt directly with the ASX to integrate a trading platform into ITS (The trade execution engine run by the ASX). The fear and hyperbole in Gwaihir's posts is not just ludicrous it is illogical and lacking in a basic understanding of how technology works.

Gwaihir

One of the issues here with the ASX however, should be a discussion on whether the ASX should be required to operate an algorithm server.

All algorithmic trading simply automates the placing of orders. These are NOT run on ASX servers. The only issue that automated trading raises for the ASX is to ensure it can handle the larger number of transactions created by these trading algorithms.

Trojans, Worms, Virii etc. have nothing to do with anything relating to trading on the ASX. Sure, the computers running the algorithmic trading software may have any of those three (which are technically all just Virii anyway), however that in no way impacts on the ASX.

All communication with the ASX happens via an Application Programming Interface (API), this is a *very* limited set of commands for placing/amending/cancelling orders etc. There is *no* way a Virus can somehow "pass through" the API and infect the ASX. Look in to the FIX protocol for an understanding of what this API is and how it works.

AI and in particular Neural Networks are common algorithmic approaches... they're not Viii.

I only bothered replying to this for fear that others might read this factually incorrect fear mongering and believe it.