High Frequency Trading A bibliography of evidence-based research
 
March 2015
 
 
 
High Frequency Trading, a bibliography 
 i
of evidence-based research
 
March 2015 
 
Contents
Preface ....................................................................................................................................... ii
 
Research Overview .................................................................................................................... 1
 
Volatility .................................................................................................................................. 1
 
Manipulation ........................................................................................................................... 2
 
Market Quality ........................................................................................................................ 2
 
Investor Costs ........................................................................................................................ 4
 
Evidence-based Research Bibliography ..................................................................................... 6
 
The Wall Street Journal's "Dark Market" Series (selected articles) ............................................28
 
High Frequency Trading and "Insider Trading 2.0" ....................................................................29
 
Press Editorials .........................................................................................................................30
 
Op-eds and Commentary ..........................................................................................................32
 
Books and Documentaries ........................................................................................................42
 
"Flash Boys" by Michael Lewis ..................................................................................................44
 
60 Minutes .............................................................................................................................44
 
Reviews .................................................................................................................................44
 
CNBC ....................................................................................................................................45
 
Interviews ..............................................................................................................................45
 
Other interviews ....................................................................................................................45
 
"Flash Boys": Supporting Evidence .......................................................................................46
 
Government Reaction to HFT ...................................................................................................48
 
Central Banks ........................................................................................................................48
 
Regulators .............................................................................................................................49
 
Legislators .............................................................................................................................51
 
Prosecutors ...........................................................................................................................52
 
Other .....................................................................................................................................53
 
High Frequency Trading Defined ..............................................................................................54
 
Industry Participants ..............................................................................................................54
 
 Academics .............................................................................................................................54
 
Regulators .............................................................................................................................55
 
 
 
High Frequency Trading, a bibliography 
 ii
of evidence-based research
 
March 2015 
 
Preface
This is a bibliography of resources on the capital markets, particularly on some of the negative effects of high frequency trading (HFT). Since the December 2013 edition of this document there has been an explosion of fact-based evidence on the damaging effects of HFT. This year's bibliography highlights a wide variety of academic, government, and industry data-driven research from institutions around the world, including MIT, Harvard, Princeton, the Federal Reserve Bank, the Bank of England, the University of Chicago, BlackRock, Cornell, the SEC, the European Central Bank, Yale, Cambridge, the London School of Economics, the United Nations, and many others.
 
Research listed here also e
xplores how the most common business model employed by today’s high
frequency traders - unregulated or under-
regulated market making, often called “scalping”
- can be abusive and disruptive. Several of these studies even predate automation.  Along with evidence-based research, separate sections of this bibliography include press editorials, op-eds, other commentary, and a variety of statements from government bodies and government officials from around the world about high frequency trading. The bibliography begins with a brief overview of the evidence-based research. A detailed research bibliography containing over 100 studies begins on page six. Please also note various industry, academic, and government definitions of high frequency trading listed in the final section of this document, and note the special section on Michael Lewis's "Flash Boys."
 
R. T. Leuchtkafer 
 
March 2015