A DYSFUNCTIONAL ROLE OF HIGH FREQUENCY TRADING IN ELECTRONIC MARKETS
2012 ◽
Vol 15
(03)
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pp. 1250022
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Keyword(s):
This paper shows that high frequency trading may play a dysfunctional role in financial markets. Contrary to arbitrageurs who make financial markets more efficient by taking advantage of and thereby eliminating mispricings, high frequency traders can create a mispricing that they unknowingly exploit to the disadvantage of ordinary investors. This mispricing is generated by the collective and independent actions of high frequency traders, coordinated via the observation of a common signal.
2016 ◽
Vol 47
(2)
◽
pp. 172-194
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Keyword(s):
2019 ◽
Vol 134
(2)
◽
pp. 381-399
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2017 ◽
Vol 32
(2)
◽
pp. 111-126
◽
2016 ◽
Vol 45
(2)
◽
pp. 149-165
◽
2017 ◽
Vol 32
(3)
◽
pp. 270-282
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Keyword(s):