New Era in Canadian Trading

Abstract

Over the past year, there has been a great focus on the impact of high frequency trading (HFT) strategies. Numerous papers discussing the merits of HFT have been published, and many opinions have been expressed as to whether HFT is beneficial or harmful. Proponents and opponents of HFT are often equally ardent in supporting completely opposite positions regarding market stability, price improvement, and volatility. This has led to confusion and uncertainty as to what the current situation actually is. This article represents an attempt to present an unbiased view of the current Canadian equity landscape and HFT’s role in it.

TOPICS: VAR and use of alternative risk measures of trading risk, volatility measures