PT - JOURNAL ARTICLE AU - Tommi A. Vuorenmaa TI - The Good, the Bad, and the Ugly of Automated<br/>High-Frequency Trading AID - 10.3905/jot.2012.8.1.058 DP - 2012 Dec 31 TA - The Journal of Trading PG - 58--74 VI - 8 IP - 1 4099 - https://pm-research.com/content/8/1/58.short 4100 - https://pm-research.com/content/8/1/58.full AB - This article discusses the pros and cons of automated high-frequency trading (HFT). There appears to be much confusion of whether HFT is “Good, Bad, or Ugly.” In the terminology of this article, the “Ugly” category consists of undiscerning negative writing against HFT popularized by media. The category we label as “Bad” consists of more detailed research arguments against HFT. Perhaps surprisingly to non-professionals, the “Good” arguments outweigh the others by a milestone in academic studies. We review the commonly presented arguments as neutrally as possible and attempt to bring some additional insight to the discussion.TOPICS: Big data/machine learning, statistical methods, exchanges/markets/clearinghouses