Author : Bo Hee Min (Ph.D.)
Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (134 download)
Book Synopsis Opening Up Black Boxes of Financial Markets: Crashes, Regulations, and Interactions Between Humans and Material Entities by : Bo Hee Min (Ph.D.)
Download or read book Opening Up Black Boxes of Financial Markets: Crashes, Regulations, and Interactions Between Humans and Material Entities written by Bo Hee Min (Ph.D.) and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Building on the concept of sociomateriality of organizations and markets, this dissertation examines the mutual shaping of the U.S. financial markets by social entities and technology and subsequent transformation of the markets in the past two decades. The first chapter of the dissertation examines the Flash Crash of 2010 and demonstrates how technological systems, algorithms, and automation often cannot fulfill their promise of "rational action" and can instead invoke programmed panic that leads to inefficiency and chaos. Paradoxically, due to the safety features incorporated by their human designers, trading algorithms interacted with one another at high-speed to inadvertently result in massive selloffs and complete shutdown of trading systems, much in the manner that panicked human traders would do. The second chapter extends the legal recursivity in the sociology of law literature and integrates it with sociomateriality by disentangling the rulemaking and enforcement of the Regulation National Market System of 2005 by the Securities and Exchange Commission (SEC). It shows the recursive progression in the rulemaking of the Regulation that created a larger recursive cycle than the existing literature suggests. As the Regulation is relevant to the electronization of the financial markets, its recursivity also created a recursive process in the sociomateriality of the market-an iteration between sociality and materiality in the organization of the market. The third chapter explores collective efforts to regulate algorithms after an algorithmic shift in the financial markets. After facing a regulatory crisis in investigating algorithmic activities, the SEC required market participants to build a comprehensive tracking system called Consolidated Audit Trail that can capture algorithmic activities. The implementation of the system broadened the algorithmic shift to all market participants and to the regulatory agency itself, as it is having to adopt algorithms to regulate other algorithms.
