High-frequency traders impose costs on others – BIS paper
Study of dark pools finds HFTs almost never provide liquidity, while raising the cost for all
High-frequency trading firms (HFTs) take advantage of “stale” prices to make nearly risk-free profits, while imposing costs on other market participants, research published by the Bank for International Settlements finds.
Sharks in the dark: quantifying HFT dark pool latency arbitrage uses regulatory data to assess the impact of “latency arbitrage” – in which firms race to respond to a price signal – on liquidity. The paper focuses on dark pools, private trading venues with no pre-trade
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