Algorithmic Finance and (Limits to) Governmentality: On Foucault and High-frequency Trading

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Resumé

In this essay I discuss algorithmic finance, specifically the use of fully automated trading, including high-frequency trading, in the light of Michel Foucault's notion of governmentality. I argue that a governmentality perspective offers a fruitful way of understanding particular aspects of high-frequency trading, such as how algorithms are designed to govern other market participants' anticipations of market dynamics. However, I also argue that, to fully understand the realm of algorithmic finance and high-frequency trading, it is important to supplement a governmentality approach with an analytical lexicon which is not primarily centred on productive forms of power. Specifically, I suggest that, according to media discourses on high-frequency trading, algorithmic finance often works in ways that are better grasped through, e.g. Elias Canetti's work on predatory power and Roger Caillois's work on mimesis.
OriginalsprogEngelsk
Artikelnummer6
TidsskriftLe Foucaldien
Vol/bind3
Udgave nummer1
Sider (fra-til)1-17
ISSN2515-2076
DOI
StatusUdgivet - 2017

Emneord

  • Algorithmic finance
  • Caillois
  • Canetti
  • Foucault
  • Governmentality
  • High-frequency trading
  • Power
  • Subjectivity

Citer dette

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Algorithmic Finance and (Limits to) Governmentality : On Foucault and High-frequency Trading. / Borch, Christian.

I: Le Foucaldien, Bind 3, Nr. 1, 6, 2017, s. 1-17.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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