High-Frequency Trading and Market Quality: the Case of a Slightly Exposed Market

dc.contributor.author Ekinci, Cumhur
dc.contributor.author Ersan, Oguz
dc.date.accessioned 2023-10-19T15:11:43Z
dc.date.available 2023-10-19T15:11:43Z
dc.date.issued 2022
dc.description.abstract Impacts of high-frequency trading (HFT) on market quality and various actors have been broadly studied. However, what happens when HFT is not a prominent figure in a market remains relatively unexplored. The paper seeks to answer this question focusing on 30 blue chip stocks in an emerging market, Borsa Istanbul, through Dec 2015 to Mar 2017. Despite a low share in the overall activity, HFT has observable effects, i.e. liquidity provision by non-HFT traders significantly reduces with HFT. Moreover, HFT generates profits on both positive and negative return days. Yet, HFT activity does not have an impact on volatility. These findings raise concerns regarding HFT and show potential externalities are not specific to the markets with HFT dominance. en_US
dc.description.sponsorship Scientific and Technological Research Council of Turkey (TUBITAK) [117K908] en_US
dc.description.sponsorship This work was supported by the Scientific and Technological Research Council of Turkey (TUBITAK) [grant no 117K908]. We thank Yakup Ari, participants at the Lancaster University Financial Econometrics Conference, Bilgi University Conference in honor of Ramazan Gencay, and seminar participants at Bogazici University Financial Engineering program and Kadir Has University International Trade and Finance Department, for valuable comments. en_US
dc.identifier.citationcount 6
dc.identifier.doi 10.1016/j.irfa.2021.102004 en_US
dc.identifier.issn 1057-5219
dc.identifier.issn 1873-8079
dc.identifier.scopus 2-s2.0-85121871880 en_US
dc.identifier.uri https://doi.org/10.1016/j.irfa.2021.102004
dc.identifier.uri https://hdl.handle.net/20.500.12469/5187
dc.khas 20231019-WoS en_US
dc.language.iso en en_US
dc.publisher Elsevier Science Inc en_US
dc.relation.ispartof International Review of Financial Analysis en_US
dc.rights info:eu-repo/semantics/closedAccess en_US
dc.subject Liquidity En_Us
dc.subject Impact En_Us
dc.subject Traders En_Us
dc.subject Provision En_Us
dc.subject High-frequency trading (HFT) en_US
dc.subject Liquidity
dc.subject Liquidity provision en_US
dc.subject Impact
dc.subject Volatility en_US
dc.subject Traders
dc.subject Returns en_US
dc.subject Provision
dc.subject Borsa Istanbul en_US
dc.title High-Frequency Trading and Market Quality: the Case of a Slightly Exposed Market en_US
dc.type Article en_US
dspace.entity.type Publication
gdc.author.id Ekinci, Cumhur/0000-0002-0475-2272
gdc.author.id Ersan, Oguz/0000-0003-3135-5317
gdc.author.institutional Ersan, Oğuz
gdc.author.wosid Ekinci, Cumhur/A-5251-2018
gdc.author.wosid Ersan, Oguz/J-9287-2017
gdc.bip.impulseclass C4
gdc.bip.influenceclass C5
gdc.bip.popularityclass C4
gdc.coar.access metadata only access
gdc.coar.type text::journal::journal article
gdc.description.departmenttemp [Ekinci, Cumhur] Istanbul Tech Univ ITU, Fac Management, TR-34367 Istanbul, Turkey; [Ersan, Oguz] Kadir Has Univ, Fac Econ Adm & Social Sci, Dept Int Trade & Finance, TR-34083 Istanbul, Turkey en_US
gdc.description.publicationcategory Makale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı en_US
gdc.description.scopusquality Q1
gdc.description.startpage 102004
gdc.description.volume 79 en_US
gdc.description.wosquality Q1
gdc.identifier.openalex W4200605434
gdc.identifier.wos WOS:000752848000021 en_US
gdc.oaire.diamondjournal false
gdc.oaire.impulse 10.0
gdc.oaire.influence 3.426933E-9
gdc.oaire.isgreen true
gdc.oaire.keywords Borsa Istanbul
gdc.oaire.keywords Impact
gdc.oaire.keywords Liquidity
gdc.oaire.keywords Provision
gdc.oaire.keywords Volatility
gdc.oaire.keywords High-frequency trading (HFT)
gdc.oaire.keywords Liquidity provision
gdc.oaire.keywords Traders
gdc.oaire.keywords Returns
gdc.oaire.popularity 1.1382864E-8
gdc.oaire.publicfunded false
gdc.oaire.sciencefields 0502 economics and business
gdc.oaire.sciencefields 05 social sciences
gdc.openalex.fwci 1.783
gdc.openalex.normalizedpercentile 0.87
gdc.opencitations.count 9
gdc.plumx.crossrefcites 7
gdc.plumx.mendeley 19
gdc.plumx.scopuscites 8
gdc.scopus.citedcount 8
gdc.wos.citedcount 9
relation.isAuthorOfPublication 668cc704-cc26-4a39-bb0f-5db2099bf1d3
relation.isAuthorOfPublication.latestForDiscovery 668cc704-cc26-4a39-bb0f-5db2099bf1d3
relation.isOrgUnitOfPublication 16202dfd-a149-4884-98fb-ada5f8c12918
relation.isOrgUnitOfPublication acb86067-a99a-4664-b6e9-16ad10183800
relation.isOrgUnitOfPublication b20623fc-1264-4244-9847-a4729ca7508c
relation.isOrgUnitOfPublication.latestForDiscovery 16202dfd-a149-4884-98fb-ada5f8c12918

Files

Original bundle

Now showing 1 - 1 of 1
No Thumbnail Available
Name:
5187.pdf
Size:
821.27 KB
Format:
Adobe Portable Document Format
Description:
Tam Metin / Full Text