A federally funded study provides new evidence of momentary pricing discrepancies that researchers say can be exploited by high-speed traders looking to make a quick profit.

A more realistic way to model financial risk is emerging. It could help big banks and regulators spot potholes, even if it can’t stop people falling into them.

The models used to assess financial risk are still flawed, according to a new report from a Treasury Department agency, the Office of Financial Research.

The afternoon of May 6, 2010 was among the strangest in economic history. Starting at 2:42 p.m. EDT, the Dow Jones stock index fell 600 points in just 6 minutes. Its nadir represented the deepest single-day decline in that market’s 114-year history. By 3:07 p.m., the index had rebounded. The “flash crash,” as it came ...