Modern trends of electronic trading by negotiable financial instruments
Journal Title: Вісник Житомирського державного технологічного університету. Серія: економіка, управління та адміністрування - Year 2018, Vol 83, Issue 1
Abstract
International negotiable financial instrument markets have a high level of electronic trading. It is displayed using the consolidated limit order book, the widening the range of trading orders, smart order routing, high speed access to the market on the basis of latency minimizing. The result of electronic trading is the development of high-frequency trading, the positive features of which are the increase of trading activity and market liquidity, and the reducing of transaction costs. The main drawback of high-frequency trading is the potential negative impact on market stability (software failures, the manipulative incentives of algorithmic strategies, in particular, technical arbitrage, the use of homogeneous strategies, cyber risks). The current system of high-frequency trading requires particular actions from the regulators to overcome information gaps and enhanced monitoring to create a regulatory environment that could take into account both the aspects of supporting market development and its stability through appropriate macroprudential instruments, especially the implementation of the stress testing of the high-frequency algorithms in response to the shocks of various origin, taking into account the aggregate market effect of the mutual influence of different algorithmic strategies.
Authors and Affiliations
I. S. Kravchuk
Keywords
Related Articles
- EP ID EP281597
- DOI -
- Views 141
- Downloads 0
Identification of the management object of enterprise’s economic security
The increase in the uncertainty of environment intensifies the existing manifestations of instability as well as the predictive assessments of size of risks in the process of enterprise’s activities. The presence of cohe...
Motivation as a labor efficiency factor
The article deals with the issues of labor motivation. Motivation, as a process of influence on a worker-person, occupies an important place in the system of enterprise management, personnel management and labor manageme...
Organization of Financial Results Analysis within Marketing Research of Competitive Advantages
One of the internal competitive advantages is the formation and usage of its financial results, the effectiveness of which depends on the managerial of enterprise’s personnel. The provision of managers with reliable mark...
Accounting assessment
The proper evaluation of accounting objects influences essentially upon the reliability of assessing the financial situation of a company. Thus, the problem in accounting estimate is quite relevant. The works of home and...
Role of state innovative policy in economic development of country
The article researches the problems of state innovative policy in Ukraine, namely the main regulations of state innovative policy declared in the Concept of scientific and technological and innovative development of Ukra...