%0 Journal Article %A Jesse Blocher %A Rick Cooper %A Jonathan Seddon %A Ben Van Vliet %T COMMENTARY: A Retrospective Look: Phantom Liquidity and High-Frequency Quoting %D 2018 %R 10.3905/jot.2018.13.4.117 %J The Journal of Trading %P 117-118 %V 13 %N 4 %X In this paper we take a retrospective look at our paper “Phantom Liquidity and High-Frequency Quoting” and discuss the context of the research in light of our broader inquiry into the nature of the high-frequency trading industry. The data presented in this paper appear to show that limit order cancellations of high-frequency traders are associated with price discovery and liquidity provision, rather than some manner of systematic taking advantage of other market participants. These firms are acting as rational, profit-seeking businesses, and we believe time has shown this view to be correct. In the years since publication, HFT has matured, and consolidated into fewer, lower-cost providers of efficiency and liquidity services, much like we would expect in any other industry.TOPICS: Legal/regulatory/public policy, quantitative methods %U https://jot.pm-research.com/content/iijtrade/13/4/117.full.pdf