The fall of high-frequency trading: A survey of competition and profits

Jean-Philippe Serbera and Pascal Paumard

Research in International Business and Finance, 2016, vol. 36, issue C, 271-287

Abstract: We investigate high-frequency trading (HFT) strategies, inventorying the strategies already studied in the literature and introducing innovative strategies detected by private institutional research. To this end, we expand the existing classification, and we offer names for new categories. In a complementary but original manner, we introduce counter reactions from professional traders in response to HFT predatory strategies. These human answers reverse the usual framework of competition between high-frequency traders (HFTs) and low frequency traders (LFTs) and also widen this cadre to HFTs algos (predators) versus execution algos.

Keywords: Survey; Markets’ micro-structure; High-frequency trading; Profitability; Competition (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:36:y:2016:i:c:p:271-287

DOI: 10.1016/j.ribaf.2015.09.021

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