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Journal of Information Technology

Document Type

Research Article

Abstract

This article deals with the increasing computerization of the financial markets and the consequences of such process on our ability to collect information about financial prices. The concept of information is at the heart of financial economics simply because this notion is a precondition for all investments. Since financial prices characterize an agreement on a transaction between two counterparties, they understandably became a key informational indicator for decision. This article will analyse the increasing computerization of financial sphere by discussing the recent emergence of what is called a “flash crash” and its impact on the traditional ways of collecting information in finance (technical analysis, fundamental analysis and statistical approach). I argue that the growing computerization of financial markets generated a “hyper-reality” in which financial prices do not refer to “something” anymore implying a revision of our usual way of defining/using the notion of information.

DOI

10.1057/s41265-016-0027-1

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