High Frequency Trading 101: Regulatory Impact in American and European Markets

Allen, Yasmine Elisabeth (2016) High Frequency Trading 101: Regulatory Impact in American and European Markets. Undergraduate thesis, under the direction of Bonnie Van Ness from Finance, University of Mississippi.

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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.

Item Type: Thesis (Undergraduate)
Uncontrolled Keywords: high frequency trading, regulations, finance
Creators: Allen, Yasmine Elisabeth
Student's Degree Program(s): B.B.A in Managerial Finance and Banking & Finance
Thesis Advisor: Bonnie Van Ness
Thesis Advisor's Department: Finance
Institution: University of Mississippi
Subjects: H Social Sciences > HG Finance
Depositing User: Yasmine Elisabeth Allen
Date Deposited: 16 May 2016 13:06
Last Modified: 16 May 2016 13:06
URI: http://thesis.honors.olemiss.edu/id/eprint/601

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