Trading Speed Competition: Can the Arms Race Go Too Far?

Bongaerts, Dion; Kong, Lingtian; Achter, Mark Van

doi:10.2139/ssrn.2779904

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Hft's Trading Strategies and Speed1

Introduction1

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2016

2024

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Cited by 4 publications

(3 citation statements)

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“…Theory. If investors appreciate faster trade completion, then an HFT arms race could be desirable from a social perspective Bongaerts, Kong & Van Achter (2015). formalize this…”

mentioning

confidence: 99%

The Economics of High-Frequency Trading: Taking Stock

Menkveld

2016

Annu. Rev. Financ. Econ.

252

100

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“…Theory. If investors appreciate faster trade completion, then an HFT arms race could be desirable from a social perspective Bongaerts, Kong & Van Achter (2015). formalize this…”

mentioning

confidence: 99%

The Economics of High-Frequency Trading: Taking Stock

Menkveld

2016

Annu. Rev. Financ. Econ.

252

100

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“…Finally, observing the price competition in a limit-order market Bongaerts et al (2016) discover that the increase of HFT has as the final effect a general improvement of liquidity.…”

Section: Hft's Trading Strategies and Speedmentioning

confidence: 97%

What FinTech Can Learn from High-Frequency Trading: Economic Consequences, Open Issues and Future of Corporate Disclosure

Monaco

2018

Palgrave Studies in Digital Business &Amp; Enabling Technologies

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This chapter provides a review on key literature on High-Frequency Trading (HFT) over an 11-year period. Using a thematic analysis, the main themes developed within this research stream are identified and insights on the evolution of theory in relation to HFT are presented. This analysis highlights that the effects of HFT on market liquidity, trading strategies and speed, implications for market structure changes, and the relationship between the "scriptability" of corporate disclosure and HFT short-term information advantage, are key themes.

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“…13 This finding also puts forward a new channel through which the evidence on crashes and highfrequency trading reported in Sornette and von der Becke (2011) could be understood. Moreover, it could be seen as an additional negative outcome of the HFT arms' race documented in Biais, Foucault and Moinas (2015), Bongaerts, Kong and Van Achter (2015) and Budish, Cramton and Shim (2013).…”

Section: Introductionmentioning

confidence: 99%