Flying by the seat of their pants: What can High Frequency Trading learn from aviation?

Gordon Baxter; John Cartlidge

Flying by the seat of their pants: What can High Frequency Trading learn from aviation?

Gordon Baxter, John Cartlidge

Department of Computer Science

Research output: Chapter in Book/Report/Conference proceeding › Conference Contribution (Conference Proceeding)

6 Citations (Scopus)

239 Downloads (Pure)

Abstract

As we build increasingly large scale systems (and systems of systems), the level of complexity is also rising. We still expect people to intervene when things go wrong, however, and to diagnose and fix the problems. Aviation has a history of developing systems with a very good safety record. Domains such as high frequency trading (HFT), however, have a much more chequered history. We note that there are several parallels that can be drawn between aviation and HFT. We highlight the ironies of automation that apply to HFT, before going on to identify several lessons that have been used to improve safety in aviation and show how they can be applied to increase the resilience of HFT in particular.

Original language	English
Title of host publication	ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems
Editors	Guillaume Brat, Eduardo Garcia, Antonio Moccia, Philippe Palanque, Alberto Pasquini, Francisco Javier Saez, Marco Winckler
Publisher	Association for Computing Machinery (ACM)
Pages	64-73
Number of pages	10
Publication status	Published - 28 May 2013
Event	ATACCS-2013: 3rd International Conference on Application and Theory of Automation in Command and Control Systems - Naples, Italy Duration: 28 May 2013 → 30 May 2013

Conference

Conference	ATACCS-2013: 3rd International Conference on Application and Theory of Automation in Command and Control Systems
Country/Territory	Italy
City	Naples
Period	28/05/13 → 30/05/13

Bibliographical note

Copyright is held by the owner/author(s). Publication rights licensed to ACM.

Keywords

automated trading
high frequency trading
financial markets
aviation regulation
safety critical systems
critical systems
automation

Access to Document

G. Baxter & J. Cartlidge (2013) Flying by the seat of their pants.
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]. ATACCS '13, May 28 - 30 2013, Naples, Italy Copyright is held by the owner/author(s). Publication rights licensed to ACM.
Accepted author manuscript, 259 KB

http://www.cs.bris.ac.uk/~cszjpc/pubs/Baxter-Cartlidge-ATACCS-2013-Final-Annotated.pdf

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Persistent link

LSCITS-RPV2: LARGE SCALE COMPLEX IT SYSTEMS INITIATIVE
Cliff, D. (Principal Investigator)
1/07/07 → 1/07/13
Project: Research

Cite this

Baxter, G., & Cartlidge, J. (2013). Flying by the seat of their pants: What can High Frequency Trading learn from aviation? In G. Brat, E. Garcia, A. Moccia, P. Palanque, A. Pasquini, F. J. Saez, & M. Winckler (Eds.), ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems (pp. 64-73). Association for Computing Machinery (ACM). http://www.cs.bris.ac.uk/~cszjpc/pubs/Baxter-Cartlidge-ATACCS-2013-Final-Annotated.pdf

Baxter, Gordon ; Cartlidge, John. / Flying by the seat of their pants : What can High Frequency Trading learn from aviation?. ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems. editor / Guillaume Brat ; Eduardo Garcia ; Antonio Moccia ; Philippe Palanque ; Alberto Pasquini ; Francisco Javier Saez ; Marco Winckler. Association for Computing Machinery (ACM), 2013. pp. 64-73

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abstract = "As we build increasingly large scale systems (and systems of systems), the level of complexity is also rising. We still expect people to intervene when things go wrong, however, and to diagnose and fix the problems. Aviation has a history of developing systems with a very good safety record. Domains such as high frequency trading (HFT), however, have a much more chequered history. We note that there are several parallels that can be drawn between aviation and HFT. We highlight the ironies of automation that apply to HFT, before going on to identify several lessons that have been used to improve safety in aviation and show how they can be applied to increase the resilience of HFT in particular.",

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Baxter, G & Cartlidge, J 2013, Flying by the seat of their pants: What can High Frequency Trading learn from aviation? in G Brat, E Garcia, A Moccia, P Palanque, A Pasquini, FJ Saez & M Winckler (eds), ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems. Association for Computing Machinery (ACM), pp. 64-73, ATACCS-2013: 3rd International Conference on Application and Theory of Automation in Command and Control Systems, Naples, Italy, 28/05/13. <http://www.cs.bris.ac.uk/~cszjpc/pubs/Baxter-Cartlidge-ATACCS-2013-Final-Annotated.pdf>

Flying by the seat of their pants: What can High Frequency Trading learn from aviation? / Baxter, Gordon; Cartlidge, John.
ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems. ed. / Guillaume Brat; Eduardo Garcia; Antonio Moccia; Philippe Palanque; Alberto Pasquini; Francisco Javier Saez; Marco Winckler. Association for Computing Machinery (ACM), 2013. p. 64-73.

Research output: Chapter in Book/Report/Conference proceeding › Conference Contribution (Conference Proceeding)

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T2 - ATACCS-2013: 3rd International Conference on Application and Theory of Automation in Command and Control Systems

AU - Baxter, Gordon

AU - Cartlidge, John

N1 - Copyright is held by the owner/author(s). Publication rights licensed to ACM.

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N2 - As we build increasingly large scale systems (and systems of systems), the level of complexity is also rising. We still expect people to intervene when things go wrong, however, and to diagnose and fix the problems. Aviation has a history of developing systems with a very good safety record. Domains such as high frequency trading (HFT), however, have a much more chequered history. We note that there are several parallels that can be drawn between aviation and HFT. We highlight the ironies of automation that apply to HFT, before going on to identify several lessons that have been used to improve safety in aviation and show how they can be applied to increase the resilience of HFT in particular.

AB - As we build increasingly large scale systems (and systems of systems), the level of complexity is also rising. We still expect people to intervene when things go wrong, however, and to diagnose and fix the problems. Aviation has a history of developing systems with a very good safety record. Domains such as high frequency trading (HFT), however, have a much more chequered history. We note that there are several parallels that can be drawn between aviation and HFT. We highlight the ironies of automation that apply to HFT, before going on to identify several lessons that have been used to improve safety in aviation and show how they can be applied to increase the resilience of HFT in particular.

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BT - ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems

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A2 - Moccia, Antonio

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Baxter G, Cartlidge J. Flying by the seat of their pants: What can High Frequency Trading learn from aviation? In Brat G, Garcia E, Moccia A, Palanque P, Pasquini A, Saez FJ, Winckler M, editors, ATACCS-2013: Proceedings of the Third International Conference on Application and Theory of Automation in Command and Control Systems. Association for Computing Machinery (ACM). 2013. p. 64-73

Flying by the seat of their pants: What can High Frequency Trading learn from aviation?

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LSCITS-RPV2: LARGE SCALE COMPLEX IT SYSTEMS INITIATIVE

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