High-frequency trading and its impact on market liquidity: A review of literature

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dc.contributor.authorErsan, Oğuz
dc.contributor.authorDalgıç, Nihan
dc.contributor.authorEkinci, Cumhur Enis
dc.contributor.authorBodur, Mehmet
dc.date.accessioned2021-02-21T14:18:34Z
dc.date.available2021-02-21T14:18:34Z
dc.date.issued2021
dc.departmentALKÜ
dc.description.abstractHigh-frequency trading (HFT) has been dominating the activity in developed financial markets in the last two decades. Despite its recent formation, the literature on the impacts of HFT on financial markets and participants is broad. However, there are ongoing debates and unanswered questions within many subtopics. We survey through the research towards HFT effects on liquidity in an attempt to explain the coexistence of evidence regarding both the positive and the negative impacts of HFT. We name two main factors leading to mixed results. Former concerns the negative market conditions such as intraday shocks, through which HFT trading patterns may sharply change. Latter regards the certain characteristics of HFT liquidity provision with the potential to present externalities for the market.
dc.description.abstractHigh-frequency trading (HFT) has been dominating the activity in developed financial markets in the last two decades. Despite its recent formation, the literature on the impacts of HFT on financial markets and participants is broad. However, there are ongoing debates and unanswered questions within many subtopics. We survey through the research towards HFT effects on liquidity in an attempt to explain the coexistence of evidence regarding both the positive and the negative impacts of HFT. We name two main factors leading to mixed results. Former concerns the negative market conditions such as intraday shocks, through which HFT trading patterns may sharply change. Latter regards the certain characteristics of HFT liquidity provision with the potential to present externalities for the market.
dc.identifier.endpage368en_US
dc.identifier.issn2651-4192
dc.identifier.issue1en_US
dc.identifier.startpage345en_US
dc.identifier.urihttps://doi.org/10.29023/alanyaakademik.799039
dc.identifier.urihttps://dergipark.org.tr/tr/download/article-file/1305921
dc.identifier.urihttps://hdl.handle.net/20.500.12868/1379
dc.identifier.volume5en_US
dc.language.isoen
dc.publisherAlanya Alaaddin Keykubat Üniversitesi
dc.relation.ispartofAlanya Akademik Bakış
dc.relation.publicationcategoryMakale - Ulusal Hakemli Dergi - Başka Kurum Yazarı
dc.rightsinfo:eu-repo/semantics/openAccess
dc.subjectHigh-frequency trading
dc.subjectHFT
dc.subjectLiquidity
dc.subjectIntraday shocks
dc.subjectExtreme price movements
dc.subjectHigh-frequency trading
dc.subjectHFT
dc.subjectLiquidity
dc.subjectIntraday shocks
dc.subjectExtreme price movements
dc.titleHigh-frequency trading and its impact on market liquidity: A review of literature
dc.title.alternativeHigh-frequency trading and its impact on market liquidity: A review of literature
dc.typeArticle

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2021 - Cilt 5 - Sayı 1