High Frequency Trading: an overview
Fecha
2019Director
Versión
Acceso abierto / Sarbide irekia
Tipo
Trabajo Fin de Grado/Gradu Amaierako Lana
Impacto
|
nodoi-noplumx
|
Resumen
High Frequency Trading has been a recurring theme in financial debates. Fuelled by a
considerable increase in worldwide trading volume and the
sudden appearance of flash
crashes, these trading strategies have drawn tremendous public attention in recent years.
However, in order to form a well-founded opinion on the topic, and to be able to understand
the ...
[++]
High Frequency Trading has been a recurring theme in financial debates. Fuelled by a
considerable increase in worldwide trading volume and the
sudden appearance of flash
crashes, these trading strategies have drawn tremendous public attention in recent years.
However, in order to form a well-founded opinion on the topic, and to be able to understand
the consequences that ultra-fast trading provokes
in
financial markets, a deep research on
the topic is necessary. Is not unusual to find
inaccurate or
bias opinions on the subject in the
media or among several market participants, that lack any theoretical or empirical basis. In
other words, the academic research on High Frequency Trading, and its consequences in
financial markets, is limited and usually ignored.
In consequence, the aim of this paper is to
provide an up to date overview on High Frequency Trading, including definitions, key
concepts, historical background, strategies, and its positive and negative consequences.
Furthermore, by analysing certain proposed solutions to regulate or monitor ultra-fast
trading activity, the paper contributes to the ongoing discussion on the subject, evaluating
which could be the pros and the cons of each alternative, and which is their effectiveness in
mitigating the problems that High
Frequency
Trading
induces in financial markets.
Hopefully, after reading this paper, the reader will have a more accurate insight on the topic. [--]
Materias
High-Frequency Trading,
Algorithmic trading,
Latency,
Trading strategies,
Frequent batch auctions
Titulación
Enpresen Administrazio eta Zuzendaritzan Nazioarteko Graduatua / Ekonomian Nazioarteko Graduatua Nafarroako Unibertsitate Publikoan /
Graduado o Graduada Internacional en Administración y Dirección de Empresas / Graduado o Graduada Internacional en Economía por la Universidad Pública de Navarra