The 2010 Stock Market Flash Crash: A Case Study on AI-Driven Trading Incidents

Explore the unprecedented flash crash of the Dow Jones in 2010, a pivotal event highlighting the potential impact of automated high-frequency trading. Navinder Singh Sarao is the central figure suspected to have employed AI algorithms for profit manipulation. This incident underscores the need for robust AI governance and responsible AI practices.

Matched TAIM controls

Suggested mapping from embedding similarity (not a formal assessment). Browse all TAIM controls

GOVERN 6.2 — similarity 0.488, rank 1. TAIM detail and related incidents →
MEASURE 1.3 — similarity 0.467, rank 2. TAIM detail and related incidents →
GOVERN 1.7 — similarity 0.462, rank 3. TAIM detail and related incidents →

Source

Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/28

Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.