In a speech at Harvard Law School, CFTC commissioner Christopher Giancarlo warned that cyber-risks are the "number one threat to 21st century financial markets," with a greater disruptive potential than advances in automated trading and emerging technologies like the blockchain. In addition to various threats posed by cybercriminals, Giancarlo said that the rapid shift to automated trading has also presented new challenges, including increased risk of sudden spikes in market volatility and "phantom liquidity" arising from the sheer speed of execution, flawed algorithms and position crowding.
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