Abstract
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.
Original language | English |
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Article number | 6 |
Journal | Le Foucaldien |
Volume | 3 |
Issue number | 1 |
Pages (from-to) | 1-17 |
ISSN | 2515-2076 |
DOIs | |
Publication status | Published - 2017 |
Keywords
- Algorithmic finance
- Caillois
- Canetti
- Foucault
- Governmentality
- High-frequency trading
- Power
- Subjectivity