RT Journal Article SR Electronic T1 The Good, the Bad, and the Ugly of Automated
High-Frequency Trading JF The Journal of Trading FD Institutional Investor Journals SP 58 OP 74 DO 10.3905/jot.2012.8.1.058 VO 8 IS 1 A1 Tommi A. Vuorenmaa YR 2012 UL https://pm-research.com/content/8/1/58.abstract 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