Friday 29 April 2011

Week 7 Update

Met with an investment bank employee who suggested that the Flash Crash and the effect of Algorithmic Trading on Volatility was not as interesting a topic as the effect of Algorithmic Trading on Liquidity. She stated that she had come across evidence that Algorithmic Trading reduced liquidity. Which I contrasted to the 'Does Algorithmic Trading improve Liquidity?' paper by Hendershott.

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