The Economics of Flash Orders and Trading
Journal of Investment Management, Fourth Quarter, 2016
17 Pages Posted: 3 Nov 2011 Last revised: 11 Apr 2017
Date Written: January 15, 2011
This paper surveys some economic principles required to understand the characteristics and effects of flash orders and trading. We present the benefits and current controversies surrounding flash orders. Finally, we offer recommendations that would be of interest to policymakers.
Keywords: flash orders, high frequency trading, algorithmic trading, volatility
JEL Classification: D40, D80, D84, G14, G18, G20, G28
Suggested Citation: Suggested Citation