Curbing the Dangers of High-Frequency Trading

The Economists' Voice, Forthcoming

3 Pages Posted: 31 May 2012 Last revised: 20 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

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

Matthew T. Clements (Contact Author)

St. Edward's University ( email )

3001 South Congress Avenue
Austin, TX 78704
United States
(512) 428-1321 (Phone)

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