@article {Vuorenmaa58, author = {Tommi A. Vuorenmaa}, title = {The Good, the Bad, and the Ugly of AutomatedHigh-Frequency Trading}, volume = {8}, number = {1}, pages = {58--74}, year = {2012}, doi = {10.3905/jot.2012.8.1.058}, publisher = {Institutional Investor Journals Umbrella}, abstract = {This article discusses the pros and cons of automated high-frequency trading (HFT). There appears to be much confusion of whether HFT is {\textquotedblleft}Good, Bad, or Ugly.{\textquotedblright} In the terminology of this article, the {\textquotedblleft}Ugly{\textquotedblright} category consists of undiscerning negative writing against HFT popularized by media. The category we label as {\textquotedblleft}Bad{\textquotedblright} consists of more detailed research arguments against HFT. Perhaps surprisingly to non-professionals, the {\textquotedblleft}Good{\textquotedblright} 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}, issn = {1559-3967}, URL = {https://jot.pm-research.com/content/8/1/58}, eprint = {https://jot.pm-research.com/content/8/1/58.full.pdf}, journal = {The Journal of Trading (Retired)} }