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- What FinTech can learn from high-frequency trading: economic consequences, open issues and future of corporate disclosurePublication . Monaco, EleonoraThis chapter provides a review on key literature on High-Frequency Trading (HFT) over an 11-year period. Using a thematic analysis, the main themes developed within this research stream are identified and insights on the evolution of theory in relation to HFT are presented. This analysis highlights that the effects of HFT on market liquidity, trading strategies and speed, implications for market structure changes, and the relationship between the “scriptability” of corporate disclosure and HFT short-term information advantage, are key themes. The analysis also suggests that many open questions remain unanswered including more recent HFT trading strategies and complex techniques applied to analyse the content of both voluntary and mandatory corporate disclosure. As capital markets evolve, HFT’s speed may no longer be sufficient to maintain competitiveness. The chapter concludes with a discussion of future trends and areas for research on HFT.
