Are smarter algorithms in the works?

The quants took it on the chin in the credit rout, revealing a lack of differentiation that some think will abate. More firms are tweaking their algorithms, and the hope is that they will end up being less correlated and thus less susceptible to mass selling. According to Financial News Online, more software outfits are aiming to incorporate risk rules that would exist with arbitrage rules. We're also seeing more companies bent on extending programs to span more asset classes. Some companies are also tinkering with adding real-time news triggers that would be fed by, say, the Dow Jones news wire. And then there's the issue of order execution, some firms want programs that can smartly execute. All that in one product would be something to consider.  

For more:
- here's the Financial News Online article