How to think about high-frequency trading firms
(2011) Forum financier : revue bancaire et financière — Vol. 1-2, n° 1-2, p. 70-72 (2011)
Files
HFT3.pdf
Open Access - Adobe PDF
- 199.71 KB
Details
- Authors
- Abstract
- In this short article, I explain that the emergence of high-frequency trading firms comes from the increasing fragmentation of financial markets since the early 1990's. I also summarize the advantages and disadvantages of high-frequency trading, which have been identified in the empirical literature. I then define the role played by these high-frequency trading firms during the 'flash crash' on Thursday May 6, 2010. I conclude by underlying that automated trading does not necessarily lead to worsening market conditions, given the animal spirits of traditional investors in stressful periods.
Citations
Petitjean, M. (2011). How to think about high-frequency trading firms. Forum financier : revue bancaire et financière, 1-2(1-2), 70-72. https://hdl.handle.net/2078.5/47133 (Original work published 2011)