Trading and Ordering Patterns of Market Participants in High Frequency Trading Environment - Empirical Study in the Japanese Stock Market

Although an old and rare practice, spoofing has re-emerged as a subject ofintense debate within modern financial markets. An activity entailing thefraudulent creation of orders to buy and sell securities with the purposeof manipulating the market, spoofing highlights the multiple and complexmoral valences of contemporary, automated, finance. In this paper, I studyspoofing as an opportunity to understand markets and their relations ofexchange. In particular, by extending Weberian metaphors of markets asmoral and organizational communities, I examine how the courts and marketparticipants distinguish the ‘false’ transactions of spoofing from the‘real’ exchanges of 'normal' market behavior. Combining Marilyn Strathern’stheoretical discussion of the anthropological relation with recentliteratures on infrastructures and markets, I argue that the perceivedreality of transactions is a product of how novel forms of economicknowledge are able to make sense of ‘taken for granted’ behavioral patternswithin digital platforms of market action. The intent that constitutes‘real’ trades is therefore a product of how market participants, economicexperts and the courts interpret the operational underbelly of markets andthe relations that they produce.

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Testing for jumps in Japanese stock market under the financial crisis through high-frequency data

Proceedings of the ISCIE International Symposium on Stochastic Systems Theory and its Applications ◽

10.5687/sss.2011.102 ◽

2011 ◽

Vol 2011 (0) ◽

pp. 102-111

Author(s):

Y. Barada ◽

Y. Kubo ◽

K. Yasuda

Keyword(s):

Financial Crisis ◽

Stock Market ◽

High Frequency ◽

High Frequency Data ◽

Frequency Data ◽

Japanese Stock Market

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High-Frequency Trading and Conflict in the Financial Markets

Journal of Information Technology ◽

10.1057/s41265-016-0031-5 ◽

2017 ◽

Vol 32 (3) ◽

pp. 270-282 ◽

Cited By ~ 3

Author(s):

Ricky Cooper ◽

Jonathan Seddon ◽

Ben Van Vliet

Keyword(s):

Financial Markets ◽

High Frequency ◽

High Frequency Trading ◽

Market Makers ◽

Market Participants ◽

Software Vendor ◽

Traditional Market ◽

Recent Developments ◽

The Way

The last few decades has seen an ever-increasing growth in the way activities are productized and associated with a financial cost. This phenomenon, termed financialization, spans all areas including government, finance, health and manufacturing. Recent developments within finance over that past decade have radically altered the way trading occurs. This paper analyses high-frequency trading (HFT) as a necessary component of the infrastructure that makes financialization possible. Through interviews with HFT firms, a software vendor, regulators and banks, the effects of HFT on market efficiency, and its impact on costs to long-term investors are explored. This paper contributes to the literature by exploring the conflict that exists between HFT and traditional market makers in today's fragmented markets. This paper argues that society should be unconcerned with this conflict and should instead focus on the effects these participants have on the long-term investors, for whom the markets ultimately exist. In order to facilitate the best outcomes, regulation should be simple, aimed at keeping participants’ behavior stable, and the interactions among them transparent and straightforward. Financialization and HFT are inextricably linked, and society is best served by ensuring that the creative energy of these market participants is directed on providing liquidity and removing inefficiencies.

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