Legal and regulatory scrutiny of high-frequency trading (HFT) has increased significantly, as prominent editorial and media coverage of HFT continues to spark concerns over market functions and fairness.
Regulators are examining HFT activity to determine the degree to which HFT strategies enhance market liquidity, achieve more efficient prices, create unfair advantages, and/or promote insider trading through illegal means.
Analysis Group economists and our affiliated experts have wide-ranging experience in market microstructure topics, examining the underlying functions associated with trading. We have analyzed allegations of irregular trading and market manipulation. We have isolated and identified the impact of individual transactions and trading algorithms. More broadly, we have developed a thorough understanding of allegedly manipulative trading behaviors and techniques, working alongside academics and practitioners specializing in financial economics.