Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/26979
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dc.contributor.authorBanerjee, Anirban-
dc.contributor.authorRoy, Prince-
dc.date.accessioned2023-12-05T10:05:38Z-
dc.date.available2023-12-05T10:05:38Z-
dc.date.issued2023-10-12-
dc.identifier.issn18790585-
dc.identifier.urihttp://hdl.handle.net/11718/26979-
dc.description.abstractThe current academic literature on HFTs considers them as the present-day de facto market makers. We show that HFT trading strategies have moved away from passive market-making over time. We explore the role of regulatory hurdles in this regard and find that penalties on high OTR (order-to-trade ratio) negatively affect HFT market-making and result in HFTs participating in trades as liquidity takers rather than liquidity providers. HFT passive market making is positively associated with the OTR. We also observe reduced profitability of HFT market-making strategies over time.en_US
dc.language.isoenen_US
dc.publisherElsevieren_US
dc.relation.ispartofPacific-Basin Finance Journalen_US
dc.subjectMarket microstructureen_US
dc.subjectHigh frequency tradingen_US
dc.subjectMarket-makingen_US
dc.titleHigh-frequency traders’ evolving role as market makersen_US
dc.typeArticleen_US
Appears in Collections:Journal Articles

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