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An explosion in trading propelled by computers is raising fears that trading platforms could be knocked out by rogue trades triggered by systems running out of control.

Trading in equities and derivatives is being driven increasingly by mathematical algorithms used in computer programs. They allow trading to take place automatically in response to market data and news, deciding when and how much to trade similar to the autopilot function in aircraft.

Analysts estimate that up to 60 per cent of trading in equity markets is driven in this way.

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The US and its Nato allies have been urged to collaborate more intensely to fend off the threat of cyber-attacks in the aftermath of the alleged Chinese assault on Google.

The Pentagon's top cyber-strategist said shared warning systems had to be established and government contacts broadened.

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