kaal:claim:3808852-029

Automation and the absence of a human backstop in compliance, back office, and settlement create new risks to market integrity on decentralized exchanges, including wash trading, frontrunning, and insider trading.

Source quote, verbatim

The code may also create new risks to market integrity because of its automation and lack of a human backstop in compliance, back office, and settlement.

From

Wulf A. Kaal, Decentralization and Feedback Effects (2021), IV. Market Decentralization, p. 18
https://ssrn.com/abstract=3808852 · source PDF

Cite as

Wulf A. Kaal, Decentralization and Feedback Effects (2021). SSRN: https://ssrn.com/abstract=3808852

Classification

failuresupport: arguedfailure: no human backstop in automated settlementfamily: human-judgment-displacementeconomicsrisk-and-incentivescompliance

Related claims

extends kaal:claim:3782216-022 The code that constitutes a decentralized exchange can create new risks to market integrity, because automatio...

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