HFT is changing the ecology of the FX market, says BIS committee
High-frequency trading (HFT) might contribute liquidity to the foreign exchange market, but has affected the ecology of the sector "in ways that are not yet fully understood", according to findings published today by the markets committee of the Bank for International Settlements (BIS).
In a 31-page report, High-frequency trading in the foreign exchange market, the BIS committee analyses the activity of HFT participants in FX and highlights a number of issues that warrant further consideration
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