High-frequency trading improves market quality, study finds

technology arms race

High-frequency trading (HFT) and algorithmic trading (AT) have several beneficial effects on market quality, a new study has found.

The report, entitled Foresight: The future of computer trading in financial markets, was commissioned by the UK Government Office for Science. It examines the effect of computer-based trading (CBT) on financial markets.

The report claims CBT has many positive effects, a finding that could come as a surprise, says Jean-Pierre Zigrand, reader in finance at the London

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