Economics, Econometrics and Finance
4 years ago

Algorithmic trading boosts liquidity in Austrian equity market, reducing spreads.

RePEc: Research Papers in Economics
Algorithmic Trading and Liquidity: Long Term Evidence from Austria
Roland Mestel, Michael Murg, Erik Theissen

Paper Summary

Algorithmic trading in the Austrian equity market reduces spreads but does not affect depth or price impacts. This means that algorithmic traders, on average, act as market makers.

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