High-Frequency Trading and Conflict in the Financial Markets

Cooper, Ricky; Seddon, Jonathan J. M.; Vliet, Ben Van

doi:10.1057/s41265-016-0031-5

Cited by 9 publications

(7 citation statements)

References 64 publications

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“…This research can be especially relevant for conceptualising, developing and evaluating digital tools that fully account for the contextual conditions of poor communities at the receiving end of fintech innovations. Third, research on the business environment of fintech highlights the work of users of fintech services such as peer-to-peer lending (Jiang et al, 2018;Riggins & Weber, 2017;Xu & Chau, 2018) and explores the environmental drivers that support fintech innovations-for example, through the monitoring of algorithmic trading (Cooper et al, 2017), the use of regulatory technology (or 'regtech') in financial markets (Currie et al, 2018) and an effective regulation of mobile payments (Liu et al, 2015). Ryu & Kim, 2018).…”

Section: Is Research On Fintechmentioning

confidence: 99%

Making the world a better place with fintech research

Lagna

Ravishankar

2021

Information Systems Journal

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Financial technology (fintech) is seen as possessing significant potential to provide the poor access to financial services and help them escape the clutches of poverty. Surprisingly, Information Systems (IS) research has engaged little with fintech's promise of fostering financial inclusion for the poor. In the spirit of 'making a better world with ICTs', conducting 'responsible IS research for a better world' and 'understanding and tackling societal grand challenges through management research', we advance a framework for guiding IS research on fintech-led financial inclusion. Drawing on the IS literature and Information and Communication Technologies for Development (ICT4D) scholarship, we extrapolate five areas of research that can better illuminate fintech's contributions to financial inclusion: (a) business strategies for fintech-led financial inclusion; (b) digital artifacts of fintech-led financial inclusion; (c) business environment of fintech-led financial inclusion; (d) microfoundations of fintech for financial inclusion; (e) developmental impacts of fintech. We conclude with a discussion of how the five areas offer opportunities for impactful research on fintech and the promise of building a financially inclusive society.

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Section: Is Research On Fintechmentioning

confidence: 99%

Making the world a better place with fintech research

Lagna

Ravishankar

2021

Information Systems Journal

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“…The trader can then fill the large order at a price that is favourable to him, but which is likely to be detrimental to the other market participant (Scopino, 2015). Front running has proved particularly controversial because it is not necessarily illegal, provided that the trader has not misused confidential information in executing his strategy (Cooper et al , 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Does the deployment of algorithms combined with direct electronic access increase conduct risk? Evidence from the LME

Culley

2022

JFRC

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Purpose The purpose of this paper is to examine the effectiveness of two regulatory initiatives in developing awareness of conduct risk associated with algorithmic and direct-electronic access (DEA) trading at broker-dealers: the UK Financial Conduct Authority’s algorithmic trading compliance in the wholesale markets and Commission Delegated Regulation 2017/589 (CDR 589) to the second Markets in Financial Instruments Directive. Design/methodology/approach A qualitative examination of 15 semi-structured interviews with representatives of London Metal Exchange member firms, their clients and regulators. Findings This paper finds that the key conduct related messages in algorithmic trading compliance in the wholesale markets may not yet be fully embedded at broker–dealers. This is because of a perceived simplicity of the algorithms deployed by broker dealers or, alternatively, a lack of reflection on their impact. Conversely, a concern exists that clients’ deployment of algorithms on DEA channels provided by broker–dealers increase conduct risk. However, the threat of harm posed by clients is not envisaged in current definitions of conduct risk. Accordingly, CDR 2017/589 does not currently require firms to evaluate clients’ awareness of it. Research limitations/implications This study’s findings are limited to the insights provided by 15 participants. Originality/value This paper contributes to existing research by deepening understanding of conduct risk arising from algorithmic trading and DEA. To account for the potential harm arising from clients’ activities, this paper proposes a revision to Miles’s definition of conduct risk. This is complemented by a proposed amendment to CDR 2017/589 to require evaluation of clients’ understanding of conduct risk.

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“…Further contributions concentrate on process automation (e.g. Cooper et al 2017) and flexibility gains (e.g. Afflerbach et al 2014;Braunwarth and Ullrich 2010).…”

Section: Value Creation Modelmentioning

confidence: 99%

Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry

Dehnert

2020

Bus Res

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Digital transformation (DT) is a major challenge for traditional companies. Despite the term, DT is relatively new; its substance is not: a whole stream of research has examined the relationship between DT and firm performance with contradictory findings. Most of these studies have chosen a linear correlational approach, however, did not analyze the holistic interplay of DT dimensions, leading to firm performance. This applies especially to the mature financial services industry and the future perspectives of traditional financial service providers (FSP). Hence, it remains an open question for both research and practice what DT configurations have a positive impact on firm performance. Against this background, the aim of this exploratory study is to examine how DT dimensions are systemically connected to firm performance of incumbent FSP. Drawing on a qualitative-empirical research approach with case data from 83 FSP, we identify digital configurations along different levels of firm performance. Our findings suggest an evolution of digital configurations of FSP, leading to five empirical standard types from which only one managed to establish a profound basis of DT.

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High-Frequency Trading and Conflict in the Financial Markets

Cited by 9 publications

References 64 publications

Making the world a better place with fintech research

Making the world a better place with fintech research

Does the deployment of algorithms combined with direct electronic access increase conduct risk? Evidence from the LME

Sustaining the current or pursuing the new: incumbent digital transformation strategies in the financial service industry

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