A study on the Impact of the High-Frequency Trading on Taiwan’s Finanical Market and its Possible Response Strategies

• Main Authors: Nae-Der Pyi, 皮乃德
• Other Authors: 蔡瑤昇
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/57cszj

碩士 === 國立臺北科技大學 === 經營管理系碩士班 === 101 === HFT (High Frequency Trading, HFT), the rapid development of innovative technology and transactions from 1980, with the advancement of information technology and the popularity of the Internet, transactions from the human outcry evolution to high-speed electronic trading . With the relaxation of regulations, the rapid growth of high-frequency trading in Europe market, the market organization and structure from a single Exchange progressed to multiple exchanges and dozens of alternative exchange. This study aims to understand those three factors (the computer technology, market structure and the regulatory environment) how to affect the development of high-frequency trading, and the impact of market efficiency and fairness, The advantages and disadvantages of market''s effectiveness and innovation, via the management principle and strategy of Unite States regulatory authorities to deal the flash crash trading event. Through the literature research to confirmed the driving force come from three key factors of computer technology and the combination of algorithmic trading, creating the new transactions model by quickly and complexity of HFT (High Frequency Trading, HFT). The high-frequency trading can increase market liquidity, improve market efficiency, decrease the bid-ask spread, and improve the positive impact of exchange revenue, as well as impact on institutional investors to increase market volatility risk, fairness controversy, systemic risk and other positive and negative effects through the interviews with industry, government, academia and experts, consistent with past research. Compare the key developmental factors of high-frequency trading with other advanced countries, to proposed the leadership plan, division of tasks and made comprehensive recommendations for the competent authority. Wish this research is useful for Taiwan''s financial market regarding the benefits of high-frequency trading, and also can maintain the market development by safety and steady.