Innovative automated execution strategies like Algorithmic Trading gain significant market share on electronic market venues worldwide, although their impact on market outcome has not been investigated in depth yet. In order to assess the impact of such concepts, e.g. effects on the price formation or the volatility of prices, a simulation environment is presented that provides stylized impleme...

Algorithmic trading has becomes a huge proportion of the trades executed on securities exchanges around the world. Reduced transaction costs have faciliated a new generation of trading strategies which depend on computing and network speed. Algorithmic trading also poses a new set of risks and challenges regulators to keep up. This paper reviews the technology infrastructre supporting algorithm...

Being equipped with a unique high-frequency dataset that enables us to precisely identify algorithmic trading (i.e. computergenerated) activity, we provide strong evidence that algorithmic trading does not exceedingly increases volatility, at least not more than human traders do. Our empirical analyses cover several potential reasons why algorithmic trading could increase volatility. For exampl...

After exchanges and alternative trading venues have introduced electronic execution mechanisms worldwide, the focus of the securities trading industry shifted to the use of fully electronic trading engines by banks, brokers and their institutional customers. These Algorithmic Trading engines enable order submissions without human intervention based on quantitative models applying historical and...

Article history: One of the crucial issues of Received 22 November 2007 Received in revised form 29 October 2008 Accepted 5 November 2008 Available online 19 November 2008

This paper focuses on the post-war process of creation of a global trading system and integration of world trade. As the former came into being, multilateral trade liberalization became an on-going feature of the global economy facilitating international trade, consequently importance of international trade in the global economy increased dramatically. Since the mid-1980s, mindset of policy mak...