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Who is held responsible when a securities trading law is broken due to a software bug
Mahesh Kumaraguru <>
11 Aug 2010 1:05AM ET Hi All,
In the context of an Computer Algorithim placing an Order and receiving its Trades using a FIX session where there is no human action involved in order creation, (humans just watch the status / performance of this Order dynamically), if something goes wrong in the algorithim (software bug) which leads to unwanted market activity in violation of some SEC law, who is held responsible? Is it:-
1. The Systems analyst who wrote the requirements specification.
2. The Technology architect who designed the application.
3. The programmer who wrote the code.
4. The tester who failed to find the bug.
5. The user who bought this application and connected it to a broker / market.
Common sense says it must be "5. The user", please share your views.
I once asked this question in a FIX project meeting, a senior manager said "I dont know what SEC does, we all shall definetly loose our jobs. So don't ask stupid questions to which we may not have answers. All of you make sure you do your respective roles fully and properly".
Regards,
K. Mahesh
Who is held responsible when a securities trading law is broken due to a software bug
Mahesh Kumaraguru 11 Aug 2010 1:05AM ET
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