Online Archive of University of Virginia Scholarship
Embodied AI for Financial Literacy Robots; High-Frequency Trading and its Impact on Retail Investors189 views
Author
Rampa, Pulkit, School of Engineering and Applied Science, University of Virginia
Advisors
Iqbal, Tariq, Department of Systems Engineering, University of Virginia
Earle, Joshua, Department of Science, Technology, and Society, University of Virginia
Abstract
This paper examines the impact of high-frequency trading (HFT) on retail investors and relevant stakeholders. HFT, enabled by advanced technology and electronic trading platforms, has become a significant component of modern finance. The analysis includes the historical development of HFT, its role in major exchanges, and the debate surrounding its effects on liquidity, market efficiency, and fairness. Two case studies, the 2010 Flash Crash and the GameStop Short Squeeze, illustrate the positive and negative impacts of HFT on market stability and investor confidence. The current policy and regulatory landscape are also discussed, exploring potential reforms and legal efforts to address HFT-related issues, with a focus on the more strict regulatory environments in Italy, Spain, and France.
Degree
BS (Bachelor of Science)
Keywords
high frequency trading; trading; quantitative trading
Language
English
Rights
All rights reserved (no additional license for public reuse)
Rampa, Pulkit. Embodied AI for Financial Literacy Robots; High-Frequency Trading and its Impact on Retail Investors. University of Virginia, School of Engineering and Applied Science, BS (Bachelor of Science), 2023-05-11, https://doi.org/10.18130/660a-zy93.
