Views on improving the integrity of global capital markets
12 August 2015

Rosov Talks HFT, Blockchains, Future of Financial Markets with “Exponential” Magazine

There are potentially two major problems facing the financial sector in the next five years as CFA Institute capital markets policy analyst Svi Rosov, PhD, CFA, sees it.

First, expect increasingly weird behavior, like flash crashes, as a result of the continuing transition of markets from a human-based ecology to a machine-based one. The second problem?

“I can see a world in which the blockchain is either assimilated into existing market structures or makes them redundant,” Rosov says in his interview with Exponential magazine, published 9 August. “As we are seeing with many other industries, the big changes happen when software starts to dominate hardware — you get a whole new set of players, and a whole different industrial economy as a result.”

Rosov also tells Exponential, a Skillbridge publication, that the work that most excites him now is “the impact the blockchain will have on financial services. It is nice that some of the Silicon Valley magic is rubbing off on financial services for a change, rather than the taxi industry or watches!” Rosov says. (More on the blockchain can be found in Rosov’s policy brief on crypto-currencies.)

Read the complete Exponential interview to learn what Rosov believes is the next main trend in the sector, and how the theory he’s currently thinking about involves a quarter-inch drill, a hole in the wall, and a wedding photo.

Follow Rosov’s analysis of high frequency trading and market liquidity on our Market Integrity Insights blog, or on Twitter, @MarketIntegrity. His report on market liquidity will be published next month.

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About the Author(s)
Rebecca Arrington

Rebecca Arrington is a communications specialist at CFA Institute.

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