ECB paper finds value in high-frequency trading

European Central Bank at night

Despite "largely negative" media coverage, and causing a crash in 2010, high-frequency trading (HFT) has important benefits that may outweigh the costs, according to a working paper published by the European Central Bank (ECB) on November 4.

In the paper: High Frequency Trading and Price Discovery, researchers Jonathan Brogaard, Terrence Hendershott and Ryan Riordan find that high-frequency trades tend to move against investors that trade based on transitory errors, and in the same direction as

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: