XiXiDu comments on Ben Goertzel: The Singularity Institute's Scary Idea (and Why I Don't Buy It) - Less Wrong
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Algorithmic trading is indeed an example for the kind of risks posed by complication (unmanageable) systems but also shows that we evolve our security measures with each small-scale catastrophe. There is no example of some existential risk from true runaway technological development yet although many people believe there are such risks, e.g. nuclear weapons. Unstoppable recursive self-improvement is just a hypothesis that you shouldn't take as a foundation for a whole lot of further inductions.
Dispelling Stupid Myths About Nuclear War