Myners questions black box trading

THE UK government is being urged to launch an inquiry into high frequency "black box" computerised trading, which is believed to have exacerbated the recent market volatility.

Former City minister Lord Myners has called on both the Treasury and the Financial Services Authority to investigate the problem, according to one Sunday newspaper.

High frequency trading is blamed for wild market swings, which can see the FTSE flip-flop between positive and negative territory. It is believed such trading accounts for 50 per cent of trades on the London market.