Ethics, Finance, and Automation: A Preliminary Survey of Problems in High Frequency Trading

Davis, Michael; Kumiega, Andrew; Vliet, Ben Van

doi:10.1007/s11948-012-9412-5

Cited by 49 publications

(24 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…High-frequency trading in stock markets occurs between bots, with hardly any human intervention. Davis, Kumiega, and Van Vliet (2013) argue that current disciplinary standards do not adequately deal with the ethical problems generated by these procedures and claim that the financial industry needs a cross-cultural ethical framework to address them. The current system is vulnerable, and both the regulators and the industry itself need to identify principles for reasonable distribution of risk and responsibilities (Davis et al, 2013).…”

Section: Abstract Automation • Artificial Intelligence • Self-drivingmentioning

confidence: 99%

Moral Reasoning at Work

Kvalnes¹

2019

View full text Add to dashboard Cite

use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence and indicate if changes were made. The images or other third party material in this book are included in the book's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the book's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

show abstract

Section: Abstract Automation • Artificial Intelligence • Self-drivingmentioning

confidence: 99%

Moral Reasoning at Work

Kvalnes¹

2019

View full text Add to dashboard Cite

show abstract

“…Nonetheless, as Longstreth (1986, 7) points out, the recurring theme is that prudence demands adherence to processes that reliably produce strategies with desirable characteristics, including monitoring results in light of the strategy’s purpose, managing risk, and minimizing the possibility of large losses. Insofar as high-frequency trading is an interdisciplinary endeavor, prudence in high-frequency trading is (like corporate social responsibility) an organizational virtue (Davis, Kumiega, and Van Vliet 2013, 864-866). But, we can also think of prudence in a more general sense, one covering non-agents (those who trade for themselves).…”

Section: Establishing What’s Fair and Unfair In High-frequency Tradingmentioning

confidence: 99%

The Mysterious Ethics of High-Frequency Trading

2016

Self Cite

View full text Add to dashboard Cite

ABSTRACT:The ethics of high frequency trading are obscure, due in part to the complexity of the practice. This article contributes to the existing literature of ethics in financial markets by examining a recent trend in regulation in high frequency trading, the prohibition of deception. We argue that in the financial markets almost any regulation, other than the most basic, tends to create a moral hazard and increase information asymmetry. Since the market’s job is, at least in part, price discovery, we argue that simplicity of regulation and restraint in regulation are virtues to a greater extent than in other areas of finance. This article proposes criteria for determining which high-frequency trading strategies should be regulated.

show abstract

“…230 The arguments in favour of market efficiency should not totally drown the concerns regarding the ethics of individual 'harms' that are caused. 231 Further, a market that favours the competitive advantage enjoyed by HFT firms would only provoke a socially useless arms race in trading innovation. 232 Commentators urge that certain market practices exacerbate the already unfair advantage HFT firms have and would need to be scrutinised.…”

Section: Trading Innovationsmentioning

confidence: 99%

The Disruptive Implications of Fintech-Policy Themes for Financial Regulators

Chiu

2016

SSRN Journal

View full text Add to dashboard Cite

Ethics, Finance, and Automation: A Preliminary Survey of Problems in High Frequency Trading

Cited by 49 publications

References 32 publications

Moral Reasoning at Work

Moral Reasoning at Work

The Mysterious Ethics of High-Frequency Trading

The Disruptive Implications of Fintech-Policy Themes for Financial Regulators

Contact Info

Product

Resources

About