Honors Theses
Date of Award
2016
Document Type
Undergraduate Thesis
Department
Finance
First Advisor
Bonnie Van Ness
Relational Format
Dissertation/Thesis
Abstract
High frequency trading has impacted the American and European financial markets through its advanced algorithms, rapid speed, and preferential treatment from purchasing information and co-location from exchanges. High frequency trading alone is not harmful, but without proper regulations it can hurt the financial markets. In this thesis, I researched implemented regulations, the consequences of those regulations, and pending new regulations. To gather information, I studied relevant research on the topic, including numerous academic articles and books to get a broader view of the issues. Through my research, I have found that previous regulations implemented by American and European regulatory agencies have benefitted high frequency trading firms, and that exchanges, through selling information via co-location, have created an environment that benefits high frequency traders. High frequency trading firms are affecting the market in a negative way by providing a false sense of liquidity while acting as a market makers and by purchasing preferential information and access to the financial markets.
Recommended Citation
Allen, Yasmine Elisabeth, "High Frequency Trading 101: Regulatory Impact in American and European Markets" (2016). Honors Theses. 967.
https://egrove.olemiss.edu/hon_thesis/967
Accessibility Status
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