Fed's Kaplan: Very concerned about quant or machine driven trading

Speaking about market risk

Fed's Kaplan speaking on market risk says:

• I am very concerned about the percentage of trading in markets, or very mindful I should say, about the trading in markets that is quant driven or machine driven, especially in the last hour or 2 of trading
• risk parity and other strategies like that are creating dangers
• they are linear on the way up, but exponential on the way down
• I worry about the growth in AI and machine learning are speeding up and may be creating more leverage than we think

Kaplan is speaking at a financial markets conference on Amelia Island, Florida