High frequency trading: the secretive practice shaping financial markets.
Computerized high frequency trading has changed financial markets by using fast algorithms to trade quickly and efficiently. After the Flash Crash of 2010, regulators started looking into this practice. High frequency trading is complex and secretive, making it hard for regulators to understand and monitor. The study suggests that isolating the causes of market events linked to high frequency trading is challenging due to the interconnected nature of automated trading systems.