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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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.
Item Type: | Thesis (Undergraduate) |
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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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