BIS has published a working paper on the future of computer trading in financial markets. The Government commissioned the paper to assess how computer trading brings risks and benefits to financial markets (including high-frequency trading (HFT)) and comprises three studies, covering:

  • financial stability;
  • the impact of computer trading on liquidity, price efficiency/discovery and transaction costs; and
  • the impact of technology developments.

(Source: Foresight Paper on Computer Trading)