High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
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<strong>High</strong>-<strong>frequency</strong> <strong>trading</strong> <strong>–</strong> a <strong>discussion</strong> <strong>of</strong> <strong>relevant</strong> <strong>issues</strong> May 2013Large number <strong>of</strong> buyers absorbed the initial shock; HFTs providedliquidity, since they were buying in falling marketsNumber <strong>of</strong> individual buyers and sellers per minuteDescription<strong>High</strong> number <strong>of</strong> <strong>trading</strong> participantsinvolved on both sides <strong>of</strong> the marketshows high variety <strong>of</strong> <strong>trading</strong>interests.A total <strong>of</strong> around 200 different<strong>trading</strong> participants acted as buyersin the falling market, including butnot limited to high-<strong>frequency</strong> traders.<strong>High</strong> liquidity was in large partprovided by HFTs, as theseparticipants initially absorbed themajor sell positions and then passedthem on to protect the market. The<strong>of</strong>ten assumed acceleration <strong>of</strong>downward movements throughcomputer-based <strong>trading</strong> strategieswas not observed.27
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