Predatory Strategies in High-Frequency Trading

Carlos Jorge Lenczewski Martins


The development of High-Frequency Trading since the 1990s has been so dynamic, that one may say it certainly will be present in every country, sooner or later. Most of the research dedicated to High-Frequency Trading is dedicated to show how detrimental it may be to the financial system, other present business models and integration with other entities of the financial market, some try to research how profitable this type of trading may be, and finally some research is dedicated to the risk analysis – although these papers are very limited. This paper is aimed to expand the topic of business models by showing selected strategies of High-Frequency Trading. This is very important since these strategies may be also implemented in conditions of lower liquidity and have a direct influence on the stability of large institutions.


High-Frequency Trading; predatory strategies; algorithmic trading

Full Text:

PDF (Język Polski)


Agarwal A., High Frequency Trading: Evolution and the Future, Capgemini 2012, [dostęp: 10.04.2017].

Arnuk S., Saluzzi J., Latency Arbitrage: The real power behind predatory high frequency trading, White Paper, Themis Trading LLC 2009, December.

Biais B., Woolley P., High frequency trading. Manuscript, Toulouse University, IDEI, 2011, [dostęp: 10.04.2017].

BIS, High-frequency trading in the foreign exchange market, Basel 2011, [dostęp: 10.04.2017].

Brunnermeier M.K., Pedersen L.H., Predatory trading, “Journal of Finance” 2005, Vol. 60(4).

Chaboud A., Chiquoine B., Hjalmarsson E., Vega C., Rise of the machines: High Frequency Trading in the foreign exchange market, “International Finance Discussion Papers. Federal Reserve Board” 2009, Vol. 980.

Chistalia M., High-frequency trading – Better than its reputation?, Deutsche Bank, 2011, [dostęp: 10.04.2017].

Evans M.D.D., Lyons R.K., Order flow and exchange rate dynamics, “National Bureau of Economic Research” 1999, [dostęp: 10.04.2017].

Gomber P., Arndt B., Lutat M., Uhle T., High-frequency trading, 2011, [dostęp: 10.04.2017].

Gupta A., History of Algorithmic Trading, HFT and News Based Trading, 2017, [dostęp: 10.04.2017].

Hudak M., High Frequency Trading, International Markets, and Regulation, Dietrich College Senior Honors Program, Carnegie Mellon University, 2015.

Miller R.S., Shorter G., High-frequency trading: Overview of Recent Developments, CRS Report 44443, 2016.

Oehmke M., Brunnermeier M., Predatory Short Selling, NBER Working Papers 2013, Vol. 19514, [dostęp: 10.04.2017].

Tse J., Lin X., Vincent D., High Frequency Trading – Measurement, Detection and Response, Credit Suisse, 2012.

Data publikacji: 2017-12-08 15:26:42
Data złożenia artykułu: 2017-02-13 17:55:24


Total abstract view - 860
Downloads (from 2020-06-17) - PDF (Język Polski) - 0



  • There are currently no refbacks.

Copyright (c) 2017 Carlos Jorge Lenczewski Martins

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.