Abstract
A key message: despite commonly held negative perceptions, the available evidence indicates that high frequency trading (HFT) and algorithmic trading (AT) may have several beneficial effects on markets. However, HFT/AT may cause instabilities in financial markets in specific circumstances. This Project has shown that carefully chosen regulatory measures can help to address concerns in the shorter term. However, further work is needed to inform policies in the longer term, particularly in view of likely uncertainties and lack of data. This will be vital to support evidence-based regulation in this controversial and rapidly evolving field.
| Original language | English |
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| Publication status | Published - 11 Jan 2013 |
| Event | The Future of Computer Trading in Financial Markets: A conference to discuss the Foresight Report - London School of Economics and Political Science Duration: 11 Jan 2013 → 11 Jan 2013 http://www.systemicrisk.ac.uk/sites/default/files/media/Babis-Theodoulidis.pdf |
Conference
| Conference | The Future of Computer Trading in Financial Markets: A conference to discuss the Foresight Report |
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| City | London School of Economics and Political Science |
| Period | 11/01/13 → 11/01/13 |
| Internet address |
Keywords
- high frequency trading, financial markets, information management