About the Project
The thesis examines various techniques used in high frequency trading and the effects these trading technique may have on market quality, but also on matters of societal importance, inter alia, systemic risk. Although there are different viewpoints in literature about the pros and cons of high frequency trading, the examination leads to a conclusion that high frequency trading poses certain risks to well-functioning financial markets. Next, the thesis analyses the European regulation of high frequency trading with the purpose to assess whether the regulation can be expected to alleviate the potential problems and risks that the preceding analysis has revealed. The discussion also includes selected other provisions than those directly aimed at high frequency trading, in order to determine whether they may involve restrictions on such activity. Finally, the thesis discusses the legal approach which has been chosen in the directive. Could the aims and objectives of the directive be obtained more effectively by using other regulatory means? This part draws on newer literature particularly emerging after the financial crises and which brings important new insights regarding the theoretical foundations which the current regulatory approach rests on.
This PhD-project is part of the Research Project International Financial Market Regulation, Institutions and Efficiency.
Goal
The thesis will be submitted in the autumn 2017.
Financing
The Financial Market Fund and University of Oslo