The proliferation of computer systems of investment advice (robo-advisor) of the exchange faces the market with new problems, warned first Deputy Chairman of Bank of Russia Sergey Shvetsov. According to him, the quality of advice on what assets to buy and which to sell, computers already surpass conventional consultants, but a situation where such councils will start to follow too many players, “can lead to disaster”.
“We as the regulator will deal with the problem, when the big players will give the same advice to a large number of people. It will affect the market, because the market is stable when it is full of players with different investment strategies. When a lot of players with the same investment problem is a disaster. Validation of such programmes is the task of the regulator,” — said Shvetsov (quoted by RIA Novosti).
First Deputy Chairman of the Central Bank also pointed to the danger that control over the robots-advisers will be intercepted by hackers, who can use them for insider trading.
“If I send a virus and I know that he will be advised to sell shares of Gazprom, I’ll sell them to the first open short position and earn. Therefore, interference with the work of Robo-advisors will give rise to new types of fraud,” — said Shvetsov.
Earlier that robotic programs for investors can have a negative effect told the head of “Rosneft” Igor Sechin. In particular linking the fall in oil prices to the fact that the decision on the appointment of quotations on the stock exchanges are taken by robots.
“Financial technology today is such that decisions are often made by robots on the trading floors, and administering the programs they react to impersonal as momentary changes evolving in the course of trading, or information about the movement of oil reserves,” — said Sechin (quoted by TASS).