{"id":42,"date":"2014-01-16T15:37:53","date_gmt":"2014-01-16T15:37:53","guid":{"rendered":"https:\/\/www2.law.temple.edu\/10q\/?p=42"},"modified":"2014-01-16T15:37:53","modified_gmt":"2014-01-16T15:37:53","slug":"new-investor","status":"publish","type":"post","link":"https:\/\/law.temple.edu\/10q\/new-investor\/","title":{"rendered":"The New Investor"},"content":{"rendered":"<p>A sea change is happening in finance. Machines appear to be on the rise and humans on the decline. Human endeavors have become unmanned endeavors. Human thought and human deliberation have been replaced by computerized analysis and mathematical models. Technological advances have made finance faster, larger, more global, more interconnected, and less human. Modern finance is becoming an industry in which the main players are no longer entirely human. Instead, the key players are now cyborgs: part machine, part human. Modern finance is transforming into \u201ccyborg finance.\u201d<\/p>\n<p>I explore this sea change in &#8220;The New Investor,&#8221; an article recently published by the UCLA Law Review.\u00a0 The article offers an early, descriptive and normative examination of this transformation and its wide-ranging effects on law, society, and finance.\u00a0 The article begins by placing the rise of artificial intelligence and computerization in finance within a larger social context.\u00a0 Next, it explores the evolution and birth of a new investor paradigm in law precipitated by that rise. The article then identifies and addresses regulatory dangers, challenges, and consequences tied to the increasing reliance on artificial intelligence and computers.<\/p>\n<blockquote><p>Specifically, it warns of emerging financial threats in cyberspace, examines new systemic risks linked to speed and connectivity, studies law\u2019s capacity to govern this evolving financial landscape, and explores the growing resource asymmetries in finance.<\/p><\/blockquote>\n<p>Finally, drawing on themes from the legal discourse about rules and standards, the article closes with a defense of humans in an uncertain financial world in which machines continue to rise, and it asserts that smarter humans working with smart machines possess the key to better returns and better futures.<\/p>\n<p>The full article is available for download <a title=\"The New Investor Full Paper\" href=\"http:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=2227498\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A sea change is happening in finance. Machines appear to be on the rise and humans on the decline. Human endeavors have become unmanned endeavors. Human thought and human deliberation have been replaced by computerized analysis and mathematical models. Technological advances have made finance faster, larger, more global, more interconnected, and less human. Modern finance<\/p>\n","protected":false},"author":5,"featured_media":90,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,19,20],"tags":[],"coauthors":[18],"class_list":["post-42","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-faculty-authored","category-finance","category-technology","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The New Investor - The Temple 10-Q<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/law.temple.edu\/10q\/new-investor\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The New Investor - The Temple 10-Q\" \/>\n<meta property=\"og:description\" content=\"A sea change is happening in finance. Machines appear to be on the rise and humans on the decline. Human endeavors have become unmanned endeavors. Human thought and human deliberation have been replaced by computerized analysis and mathematical models. Technological advances have made finance faster, larger, more global, more interconnected, and less human. Modern finance\" \/>\n<meta property=\"og:url\" content=\"https:\/\/law.temple.edu\/10q\/new-investor\/\" \/>\n<meta property=\"og:site_name\" content=\"The Temple 10-Q\" \/>\n<meta property=\"article:published_time\" content=\"2014-01-16T15:37:53+00:00\" \/>\n<meta name=\"author\" content=\"Tom C.W. Lin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tom C.W. Lin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/\"},\"author\":{\"name\":\"Books Schatschneider\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154\"},\"headline\":\"The New Investor\",\"datePublished\":\"2014-01-16T15:37:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/\"},\"wordCount\":281,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2014\/12\/TheNewInvestor.jpg\",\"articleSection\":[\"Faculty Authored\",\"Finance\",\"Technology\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/law.temple.edu\/10q\/new-investor\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/\",\"url\":\"https:\/\/law.temple.edu\/10q\/new-investor\/\",\"name\":\"The New Investor - The Temple 10-Q\",\"isPartOf\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2014\/12\/TheNewInvestor.jpg\",\"datePublished\":\"2014-01-16T15:37:53+00:00\",\"author\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154\"},\"breadcrumb\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/law.temple.edu\/10q\/new-investor\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#primaryimage\",\"url\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2014\/12\/TheNewInvestor.jpg\",\"contentUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2014\/12\/TheNewInvestor.jpg\",\"width\":1024,\"height\":512,\"caption\":\"Laptop Keyboard\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/law.temple.edu\/10q\/new-investor\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/law.temple.edu\/10q\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The New Investor\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#website\",\"url\":\"https:\/\/law.temple.edu\/10q\/\",\"name\":\"The Temple 10-Q\",\"description\":\"Temple&#039;s Business Law Magazine\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/law.temple.edu\/10q\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/23e7012f0cf133dbeb0e76693c9e0154\",\"name\":\"Books Schatschneider\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g9dc77189f33a293d2c82a50cd24ebb9f\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/62b6c5fa1068c42262dab498d74cb3fc60fbba8344047dc13348bd3aacf7b70a?s=96&d=mm&r=g\",\"caption\":\"Books Schatschneider\"},\"url\":\"https:\/\/law.temple.edu\/10q\/author\/rschatsc\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The New Investor - The Temple 10-Q","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/law.temple.edu\/10q\/new-investor\/","og_locale":"en_US","og_type":"article","og_title":"The New Investor - The Temple 10-Q","og_description":"A sea change is happening in finance. 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