High‐Frequency Trading and the Execution Costs of Institutional Investors

Abstract

Abstract This paper studies whether high‐frequency trading (HFT) increases the execution costs of institutional investors. We use technology upgrades that lower the latency of the London Stock Exchange to obtain variation in the level of HFT over time. Following upgrades, the level of HFT increases. Around these shocks to HFT institutional traders’ costs remain unchanged. We find no clear evidence that HFT impacts institutional execution costs.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 100 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.