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Title: | A critical analysis of high frequency trading and its proposed regulation |
Authors: | La Ferla, Maria |
Keywords: | Electronic trading of securities Computer algorithms Capital market -- European Union countries Investments -- European Union countries |
Issue Date: | 2014 |
Abstract: | One of the biggest phenomena in trading over recent years has been the growth of what is known as High Frequency Trading (HFT). This form of trading involves trading at lightning speed using highly sophisticated computer systems. It allows computers to execute millions of orders per second with practically no human intervention. Although this form of trading had been around for a few years the algorithms used to carry out the trades are getting more and more complex as technology continues to improve. This complexity, combined with certain recent events which had a highly negative impact on financial markets, have drawn attention to HFT, shedding light on the fact that it could possibly be getting out of hand. These events have led to increased awareness of the problems that may be brought about by HFT and have opened up a debate on whether or not the practice of HFT should be regulated. This debate is still ongoing, but recent developments have clearly indicated that the main focus of authorities is to begin adopting policy measures aimed at curbing the problems brought about by HFT. The aim of this dissertation is to analyse HFT and the events that led authorities to begin working on its regulation. Both the positive and negative aspects will be discussed throughout. The work will then go on to critically assess the new policy measures that are to be implemented and look at whether they will solve the problems caused by HFT at a practical level. |
Description: | M.A.FIN.SERVICES |
URI: | https://www.um.edu.mt/library/oar//handle/123456789/2193 |
Appears in Collections: | Dissertations - MA - FacLaw - 2014 |
Files in This Item:
File | Description | Size | Format | |
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14MFIN010.pdf Restricted Access | 1.34 MB | Adobe PDF | View/Open Request a copy |
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