FYI: Whenever markets suffer a bout of volatility, someone blames high-frequency traders. In the bumpy last months of 2018, U.S. Treasury Secretary Steven Mnuchin urged a government investigation of high-speed trading. After the recent August chop, some said the exit of traditional dealers from market-making had hurt stock-trading liquidity.
And when someone blames high-frequency traders for causing market volatility, the data nerds at Citadel Securities fire up a study. Citadel’s latest study examines whether stock-trading liquidity on exchanges has declined and aggravated the market’s mood swings. The firm concludes it has not.
Regards,
Ted
https://www.barrons.com/articles/dont-blame-market-makers-for-market-volatility-51569624011?mod=djem_b_Weekly Feed for Barrons Magazine
