Academic proposes batch auctions to CFTC to mitigate HFT effects

02/20/2014 | Bloomberg

Eric Budish, an associate professor of economics at the University of Chicago, has suggested segmenting trading into auctions that would be held throughout the day as a way to mitigate the negative effects of high-frequency trading. Budish presented his proposal to the Commodity Futures Trading Commission last week. "As long as we have a continuous-time market, there will be a never-ending and harmful race for speed," Budish said. "If you move to discrete-time auctions, then it becomes about price and not speed."

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