Controlling risk in a lightning-speed trading environment

A handful of high-frequency trading firms accounted for an estimated 70 percent of overall trading volume on U.S. equities markets in 2009. One firm with such a computerized system traded over 2 billion shares in a single day in October 2008, amounting to over 10 percent of U.S. equities trading volume for the day. What are the advantages and disadvantages of this technology-dependent trading environment, and how are its risks controlled?

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Year of publication:	2010
Authors:	Clark, Carol L.
Published in:	Chicago Fed Letter. - Federal Reserve Bank of Chicago. - 2010, Feb, 272
Publisher:	Federal Reserve Bank of Chicago
Subject:	Electronic trading of securities \| Stock exchanges

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008489322