000 01252nam a22001697a 4500
008 190322b xxu||||| |||| 00| 0 eng d
022 _a0304-405X
245 _aHigh frequency trading and extreme price movements / by Jonathan Brogaard, Allen Carrion, Thibaut Moyaert, Ryan Riordan, ... Konstantin Sokolov
_cJonathan Brogaard, Allen Carrion, Thibaut Moyaert, Ryan Riordan, ... Konstantin Sokolov
260 _aAmsterdam
_bElsevier
_cMay 2018
300 _aPages 253-265
440 _a Journal of Financial Economics
_v128 (2)
_x0304-405X
500 _aAbstract Are endogenous liquidity providers (ELPs) reliable in times of market stress? We examine the activity of a common ELP type—high frequency traders (HFTs)—around extreme price movements (EPMs). We find that on average HFTs provide liquidity during EPMs by absorbing imbalances created by non-high frequency traders (nHFTs). Yet HFT liquidity provision is limited to EPMs in single stocks. When several stocks experience simultaneous EPMs, HFT liquidity demand dominates their supply. There is little evidence of HFTs causing EPMs.
690 _aHigh frequency trading
690 _aEndogenous liquidity providers (ELPs)
690 _aExtreme price movements (EPMs)
942 _2lcc
_cSE
999 _c361352
_d361352