

Insights into the High Frequency Trading Paradigm - mhb
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2034858

======
mhb
Abstract: Over the last two centuries, technological advantages have allowed
some traders to be faster than others. We argue that, contrary to popular
perception, speed is not the defining characteristic that sets High Frequency
Trading (HFT) apart. HFT is the natural evolution of a new trading paradigm
that is characterized by strategic decisions made in a volume-clock metric.
Even if the speed advantage disappears, HFT will evolve to continue exploiting
Low Frequency Trading’s (LFT) structural weaknesses. However, LFT
practitioners are not defenseless against HFT players, and we offer options
that can help them survive and adapt to this new environment.

