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High Speed Trading On Stock And Commodity Markets— From Courier Pigeons To Computers, Jerry W. Markham
High Speed Trading On Stock And Commodity Markets— From Courier Pigeons To Computers, Jerry W. Markham
Jerry W. Markham
A growing concern in the stock and commodity markets over the last several years has been the rise of high-frequency traders (HFTs). Those traders employ high-speed computer technology for the algorithmic origination, transmission and execution of their orders through fiber optic cables and micro wave towers. That technology allows HFT orders to be executed in times measured in fractions of a second. As a result of this technological advance, HFTs are now dominating trading volumes. This phenomenon has, on the one hand, led to claims by proponents of high-speed trading that HFTs are an important source of market liquidity and …