Modern Financial Markets: The Role of High-Frequency Trading

April 19, 2016 - 6:00pm - 8:00pm
Jerome Greene Hall, Room 106
435 West 116th Street
New York, NY 10027
United States

A panel discussion featuring: 


Adam Clark-Joseph, University of Illinois


Lawrence Glosten, Columbia Business School


Terrence Hendershott, Haas School of Business, UC Berkeley


Sophie Moinas, Toulouse School of Economics


Matthew Trudeau, IEX


Moderated by Merritt Fox, Columbia Law School


Introduction by Yeon-Koo Che, Columbia University Economics

Long gone are the brokers and specialists calling out orders on trading floors. Modern financial markets are powered by electronic matching engines operated by numerous exchanges and dark pools. Central players in this new financial architecture are high-frequency traders (HFTs) characterized by algorithmic
implementation of trading strategies, very short holding periods, limited directional exposure, exchange co-location, proprietary data feeds, and high speed communication infrastructures. What purpose do HFTs serve? Are they primarily sources of liquidity and price discovery, or do they siphon off profits that would otherwise accrue to long term investors. Who is ultimately paying for their investments in speed? What are the possible
reforms? A panel of academic and industry experts will seek to shed light on these issues.
A reception will follow the panel discussion.
Sponsored by the Program for Economic Research and the Program in the Law and Economics of Capital Markets