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Speed bumps should adapt to market – FOW

Simudyne is featured in POW/ Global Investor Group.

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Excerpt

Speed bumps should adapt to market conditions rather than being fixed to improve overall market quality, the head of research at London tech firm Simudyne has said.

Research from the firm has shown that whilst fixed speed bumps would help ensure better market quality, they would be harder to manipulate if they were adapted to market conditions.

“Speed bumps that adapt to market conditions would be harder to game, while improving overall market quality,” Amir Sani, head of research at Simudyne, told FOW.

He explained that quoted prices depend on market conditions and these fluctuate by nature. For instance, in 2008 there was a vicious cycle of selling which negatively impacted the quality of prices.

Chloe Hibbert