Rogue AIs Blamed for Latest Pound Crash

By Gary Cutlack on at

The pound, which only really exists as a sort of idea in space, suffered another massive crash today, only this one's not being blamed on all the politics that people won't shut up about; it's all the fault of the AIs.

Specifically, today's "flash crash" that saw the value of the pound drop by as much as six per cent in seconds, may have been triggered by trading algorithms -- software the financial giants use to try to squeeze every last penny of money out of the financial system as possible.

People who earn their salaries by stealing all the fractions of pence off people like in Superman III blamed the financial algorithms, with comments by French President Francois Hollande regarding the Brexit negotiations apparently triggering an automated sell off of the pound.

Kathleen Brooks from trading firm City Index told the New Scientist how such robots work, saying: "These days some algos trade on the back of news sites, and even what is trending on social media sites such as Twitter, so a deluge of negative Brexit headlines could have led to an algo taking that as a major sell signal for GBP. Once the pound started moving lower, then more technical algos could have followed suit, compounding the short, sharp, selling pressure."

Taking our jobs and our money. Ban these sick algos. Send them back to the 1970s where they came from. [New Scientist]


Want more updates from Gizmodo UK? Make sure to check out our @GizmodoUK Twitter feed, and our Facebook page.