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New Technologies And Infrastructures Of Financial Services

Author

Listed:
  • Radu BORES, Author-Workplace-Name : Stefan cel Mare University of Suceava, 720229, Romania
  • Ana-Maria HLACIUC Author-Workplace-Name : Stefan cel Mare University of Suceava, 720229, Romania

Abstract

This paper presents a view over recent developments in the underlying infrastructure of the financial system, more specifically electronic trading and how computers have taken over classic trading mechanisms. While some of the benefits are easy to agree upon, evidence shows that technical discrepancies have made the order book unequal fighting ground for traders. The findings of the paper suggests that in practice, high frequency trading is actually detrimental to order book health and degrades liquidity and overall quality of execution of regular trades.

Suggested Citation

  • Radu BORES, Author-Workplace-Name : Stefan cel Mare University of Suceava, 720229, Romania & Ana-Maria HLACIUC Author-Workplace-Name : Stefan cel Mare University of Suceava, 720229, Romania, 2016. "New Technologies And Infrastructures Of Financial Services," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 5(Special I), pages 1-25, august.
    • Handle: RePEc:scm:ecofrm:v:5y:2016:i:s:p:25
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    References listed on IDEAS

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    1. Carol L. Clark, 2012. "How to keep markets safe in the era of high-speed trading," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Oct.
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    3. Jonathan Brogaard & Terrence Hendershott & Ryan Riordan, 2014. "High-Frequency Trading and Price Discovery," The Review of Financial Studies, Society for Financial Studies, vol. 27(8), pages 2267-2306.
    4. Terrence Hendershott & Charles M. Jones & Albert J. Menkveld, 2011. "Does Algorithmic Trading Improve Liquidity?," Journal of Finance, American Finance Association, vol. 66(1), pages 1-33, February.
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