Curbing the Dangers of High-Frequency Trading
The Economists' Voice, Forthcoming
3 Pages Posted: 31 May 2012 Last revised: 2 Jun 2012
Date Written: February 20, 2012
Abstract
High-frequency trading, as distinct from other forms of algorithmic trading, does not enhance social welfare and can lead to instability. Mandating short, regular trading delays would prevent high-frequency trading while retaining the benefits of algorithmic trading.
Keywords: stock market, stability, regulation
JEL Classification: G18, G24
Suggested Citation: Suggested Citation
Clements, Matthew T., Curbing the Dangers of High-Frequency Trading (February 20, 2012). The Economists' Voice, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2071379
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