19. PART OF A SOLUTION OR A PROBLEM?
HFT IS PART OF THE SOLUTION
• Technological development
required to trade globally
• Liquidity, volatility, and
market efficiency improved
• Demand for multiple
trading venues persists
• Trading costs (e.g. spreads)
need to be at minimal levels
HFT IS PART OF THE PROBLEM
• Too much (uninformative)
message traffic if HFT left
unregulated/unsupervised
• Market microstructure (e.g.
order types) too complex
• Untested trading algorithms
• Complex interdependencies
between trading algorithms
Tommi A. Vuorenmaa 2014