High-Frequency Trading

At no other point in recent memory has speed in trading been more at the forefront of public discussion. The entire financial services community can thank noted author Michael Lewis for that. His “Flash Boys” book highlights the world of high-frequency trading and sets out a story line that has put computer-driven trading strategies under …

Mandating that stocks trade in set time intervals would negate some of the problems posed by high-frequency trading, according to an analysis gaining some traction. A trio of academics—University of Chicago professor Eric Budish, the University of Maryland’s Peter Cramton, and John Shim, a doctoral candidate at the Chicago Booth School—have proposed what is known …

The words “high-frequency trading” are popping up everywhere these days. What is it, how does it work and does ultra-fast trading impact you?