HIGH-FREQUENCY TRADING- BACKGROUND, CONCERNS, AND REGULATORY DEVELOPMENTS
This course provides an overview of equities High Frequency Trading or HFT for short and its potential economic and regulatory implications.
The course examines
(1), recent developments regarding probes and investigations of HFT,
(2) what equities HFT is,
(3) the nature of the general equities HFT landscape,
(4) how equities HFT works and who conducts it,
(5) equity HFT’s perceived benefits and disadvantages,
(6) the Flash Crash of 2010 and the alleged role of HFT,
(7) SEC programmatic and regulation-related initiatives to potentially monitor HFT and address its potentially negative market impact,
(8) European Union HFT regulatory developments, and
(9) various domestic HFT regulatory ideas under discussion.
This course principally focuses on equities HFT.
However, because the performance of many SEC-regulated equity products is interconnected with those of various CFTC-regulated derivative products, the course also provides a brief overview of HFT in CFTC- regulated derivatives and key HFT-related regulatory developments at the CFTC.