CS 492 W26 Role-Playing Exercise 4

Ethics and Competition in Tech

Team A

A group of "ethical tech warriors" at financial companies, with intimate understanding of how companies design and build their stock market / financial trading algorithms, some of them using in house AI designed trading algorithms. As such, the group members are aware that these algorithms make use of, analyze, and act on far more data, far faster, than any humans could. These "secret sauce" algorithms are legally protected trade secrets of the companies. The group is concerned at the rise of individual retail investors who are using publicly available platforms to trade. Since the group believes that information and speed in financial markets equates to advantage and profit, the group feels that the companies, with their sophisticated proprietary algorithms and data sets have an unfair advantage over individual, retail traders. Moreover, there have been several dangerous and sudden market swings propelled by these algorithms. Therefore, the group argues that, similarly to legal financial disclosure, companies should be required to disclose the algorithmic trading policies and requirements of algorithms they use in stock trading or other similar financial markets.

Team B

A group of tech / finance owners and libertarians who assert that these AI designed trading algorithms are legally protected trade secrets. They say that the algorithms and data sets break no laws and are the property of the companies and individuals that created / wrote / own them. Therefore they argue against any required disclosure of their property and trade secrets.