Financial Markets in a Digital World: Electronic Trading Systems and Market Fairness

EasyChair Preprint no. 3950

Abstract

Before the days of automated trading, stock markets were driven primarily by a mixture of fundamental analysis, technical analysis, speculation, and human emotion. Today, much the same is true. However, the prevalence of electronic automation has seen a marked change in way that financial markets behave in today’s environment. This paper looks at finding answers to the debates surrounding the fairness and regulation of Electronic Trading Systems (most notably, High Frequency Trading.) We will begin by building a framework upon which we can base our subsequent analysis before moving on to address the various arguments.

Keyphrases: Algorithmic Trading, dark pool, Finance, financial market, ghost liquidity, High Frequency Trading, informational efficiency, stock market, trading

@Booklet{EasyChair:3950,
  author = {Terry Kennedy},
  title = {Financial Markets in a Digital World: Electronic Trading Systems and Market Fairness},
  howpublished = {EasyChair Preprint no. 3950},

  year = {EasyChair, 2020}}