A model for unpacking big data analytics in high-frequency trading

Jonathan J.J.M. Seddon and Wendy L. Currie

Journal of Business Research, 2017, vol. 70, issue C, 300-307

Abstract: This study develops a conceptual model of the 7V′s of big data analytics to gain a deeper understanding of the strategies and practices of high-frequency trading (HFT) in financial markets. HFT is computerized trading using proprietary algorithms. Empirical data collected from HFT firms and regulators in the US and UK reveals competitive asymmetries between HFTs and low-frequency traders (LFTs) operating more traditional forms of market trading. These findings show that HFT gains extensive market advantages over LFT due to significant investment in advanced technological architecture. Regulators are challenged to keep pace with HFT as different priorities to the 7V′s are given in pursuit of a short term market strategy. This research has implications for regulators, financial practitioners and investors as the technological arms race is fundamentally changing the nature of global financial markets.

Keywords: Big data; HFT; Latency; Asymmetry; Strategies (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (23)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:70:y:2017:i:c:p:300-307

DOI: 10.1016/j.jbusres.2016.08.003

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