Marie Chen

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Staff Working Papers

High-Frequency Trading and Institutional Trading Costs

Staff Working Paper 2018-8 Marie Chen, Corey Garriott
Using bond futures data, we test whether high-frequency trading (HFT) is engaging in back running, a trading strategy that can create costs for financial institutions. We reject the hypothesis of back running and find instead that HFT mildly improves trading costs for institutions.

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