A paper by Kun Li (Ph.D. Finance ‘15), Ben Van Vliet, Assistant Professor of Finance, and Rick Cooper, Assistant Professor of Finance has been accepted for publication in the Journal of Behavioral Finance. The paper is titled “How Does High Frequency Trading Affect Low Frequency Trading?”. Kun is Assistant Professor of Finance at Beijing Normal University.
High Frequency Trading dominates trading in financial markets. However, its impact on Low Frequency Trading is still unclear. This paper fills this gap and indicates that High Frequency Trading has a liquidity provision effect and improves order execution quality for Low Frequency Trading in the US stock market.