---
title: Homogeneity, Systemic Risk, and the Regulation of Automated Trading
url: https://www.ml-quant.com/papers/ssrn/7652479/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-10-23
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7652479
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7652479
featured: 2026-10-23
citations: unknown
topic: Trading, Microstructure & Execution
---


# Homogeneity, Systemic Risk, and the Regulation of Automated Trading

A model shows how correlated automated trading decisions generate feedback and forced liquidations, with systemic risk rising as market depth shrinks relative to automated activity.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7652479
- Identifier: SSRN 7652479
- Released: 2026-10-22
- First featured: Quant Letter No. 136 (2026-10-23): https://www.ml-quant.com/issues/2026-10-23/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Trading, Microstructure & Execution
- Authors: Siwon Lee

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