PT  - JOURNAL ARTICLE
AU  - Sunil Wahal
TI  - Electronic Markets and Trading Algorithms
AID  - 10.3905/jot.2012.7.2.026
DP  - 2012 Mar 31
TA  - The Journal of Trading
PG  - 26--36
VI  - 7
IP  - 2
4099  - https://pm-research.com/content/7/2/26.short
4100  - https://pm-research.com/content/7/2/26.full
AB  - Academics attempt to understand the consequences of fragmentation, electronic markets, and trading algorithms. Practitioners, by necessity, devise ever-improving trading algorithms to achieve their trading objectives. This article is a bridge of sorts. The author uses the structural approach developed throughout decades of research on price formation to illuminate modern electronic-trading practices and algorithms. He argues that despite the constantly changing trading landscape driven by tech nology improvements, the economic trade-offs embedded in trading algorithms are, for all intents and purposes, not different from manual trading. All that has changed is the implementation.TOPICS: Exchanges/markets/clearinghouses, statistical methods, risk management