Intel's Pentium bug fix proposed as solution for dark pools

London

MODERN markets are driven by software algorithms that humans struggle to debug. To stamp out problems, financial regulators should use the same technique that Intel Corp has deployed following an infamous chip crisis in the 1990s, according to a London-based technology firm.

Rather than only providing pages of text describing their trading systems, dark-pool operators should give regulators mathematical models that show precisely how they work, Aesthetic Integration Ltd told the US Securities and Exchange Commission (SEC) in a letter last week. The code could then be examined with formal verification.