Central Banking

High-frequency traders impose costs on others – BIS paper


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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FedNow – at last

The instant payment system might help fix the US’s rusty payment rails, but it also faces competition, says Dave Birch

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