@article {Wahal26, author = {Sunil Wahal}, title = {Electronic Markets and Trading Algorithms}, volume = {7}, number = {2}, pages = {26--36}, year = {2012}, doi = {10.3905/jot.2012.7.2.026}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Academics attempt to understand the consequences of fragmentation, electronic markets, and trading algorithms. Practitioners, by necessity, devise ever-improving trading algorithms to achieve their trading objectives. This article is a bridge of sorts. The author uses the structural approach developed throughout decades of research on price formation to illuminate modern electronic-trading practices and algorithms. He argues that despite the constantly changing trading landscape driven by tech nology improvements, the economic trade-offs embedded in trading algorithms are, for all intents and purposes, not different from manual trading. All that has changed is the implementation.TOPICS: Exchanges/markets/clearinghouses, statistical methods, risk management}, issn = {1559-3967}, URL = {https://jot.pm-research.com/content/7/2/26}, eprint = {https://jot.pm-research.com/content/7/2/26.full.pdf}, journal = {The Journal of Trading (Retired)} }