HFT Helps Improve Price Efficiency, Says BOE Working Paper
A Bank of England working paper finds that aggressive buying among HFT firms usually results in a lasting change in stock prices
The normal debate over high frequency trading (HFT) is whether it adds to price discovery and market liquidity, or simply puts a drag on earnings through unnecessary intermediation. But the quant crash of 2007 and the flash crash of 2010 show how correlations between automatic trading can pose a real threat to market stability, at least in extreme cases.
A recent . . .
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