"Although some studies argue otherwise, a number of academic papers study the effects of algorithmic trading and high-frequency trading on volatility in equity markets and find evidence that, under normal market conditions, they reduce short term volatility."
That's interesting, and goes against the conventional wisdom that markets driven by automated, high-frequency trading will be much more volatile. I wonder if HFTs made major changes to avoid another Flash Crash.
That's interesting, and goes against the conventional wisdom that markets driven by automated, high-frequency trading will be much more volatile. I wonder if HFTs made major changes to avoid another Flash Crash.