Document Type
Article
Publication Date
2015
Abstract
High-frequency traders automate stock trading, placing thousands of orders over fractions of a second. Their algorithmic strategies are all too often mere rule manipulation or methods of using brute speed to gain advantages over rivals. Normative evaluation of finance’s algorithms must take into account the sector’s social function: to spur efficient, fair, and sustainable investment practices. The complex modeling deployed in high-frequency trading does not reliably contribute to these goals. Therefore, rather than straining to accommodate high-frequency trading strategies, regulators should eliminate many of them.
Publication Citation
36 Cardozo Law Review 2085 (2015).
Disciplines
Banking and Finance Law
Digital Commons Citation
36 Cardozo Law Review 2085 (2015).