NEW COST-BENEFIT ANALYSIS BY CMCRC RESEARCHER DR HUI ZHENG (USYD) EXAMINES ‘PHANTOM LIQUIDITY’ AND THE COST OF HFT REGULATION

Some market participants have long argued that the liquidity provided by HFT traders is illusory and difficult to access. But recent research concludes that HFT limit orders exert a stabilizing influence on markets, calling into question the effectiveness and rationale of recent regulatory proposals targeting high-frequency trading. Read more at TABB Forum here.