Is High Frequency Trading Beneficial to Market Quality?

2015 ◽  
Author(s):  
Graham Partington ◽  
Richard Philip ◽  
Amy Kwan
Keyword(s):  
High Frequency ◽  
High Frequency Trading ◽  
Market Quality

High Frequency Trading of Commodities

2018 ◽  
Author(s):  
Raymond P. H. Fishe
Keyword(s):  
High Frequency ◽  
Equity Markets ◽  
Conclusive Evidence ◽  
Commodity Markets ◽  
High Frequency Trading ◽  
Market Quality ◽  
Market Makers ◽  
Speed Advantage ◽  
Open Outcry ◽  
Derivative Markets

Electronic platforms and high frequency traders (HFTs) have changed the nature of trading. Like equity markets, commodity markets have experienced an influx of algorithmic traders and a decline in “pit” or open outcry trading. Regulatory efforts to understand the effects of HFTs and to offer prudent guidelines or new rules are in their infancy. An overall hesitancy exists because academic studies have produced diverse results on liquidity, volatility, and market quality. This survey focuses on high frequency trading research in commodity derivative markets, documenting basic results and extracting inferences when warranted. Evidence indicates that HFTs act as market makers and their speed advantage has lowered transaction costs, generally during normal markets. Although not entirely conclusive, evidence also suggests that HFTs may exacerbate volatility by withdrawing liquidity in times of market stress, such as during “flash” crashes.

scholarly journals Front-Running and Market Quality: An Evolutionary Perspective on High Frequency Trading

2017 ◽  
Vol 18 (4) ◽  
pp. 727-741 ◽  
Author(s):  
Thorsten Hens ◽  
Terje Lensberg ◽  
Klaus Reiner Schenk-Hoppé
Keyword(s):  
High Frequency ◽  
High Frequency Trading ◽  
Market Quality ◽  
Evolutionary Perspective ◽  
Front Running
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