This is my group final essay in CBA course FINA 855: Capital Markets and Financial Institutions lectured by Dr. Emre Unlu.
A. Beaussart, M. Fowler, K. Grunder, M. Hilderbrand, E. Tilton, D. Wuebben, Z. Zhao, “High Frequency Trading: Expanation, Status, And Implication”, UNL CBA FINA855 Finan Essay, May. 2017, (Authors are listed in alphabetical order).
This essay covers many aspects of high frequency trading. In one section of this essay, I analyzed the mechanism of some high frequency trading strategies, such as front-running, from technical perspective of existing Internet infrastructure, e.g. how an order travels from the trading desk through the Internet to multiple geographically distributed stock exchanges. Based on those analysis, I provided some suggestions on how large financial institutions could avoid being the victim of front-runners.