{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,5,4]],"date-time":"2026-05-04T00:24:38Z","timestamp":1777854278525,"version":"3.51.4"},"reference-count":71,"publisher":"SAGE Publications","issue":"3","license":[{"start":{"date-parts":[[2017,9,1]],"date-time":"2017-09-01T00:00:00Z","timestamp":1504224000000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/journals.sagepub.com\/page\/policies\/text-and-data-mining-license"}],"content-domain":{"domain":["journals.sagepub.com"],"crossmark-restriction":true},"short-container-title":["Journal of Information Technology"],"published-print":{"date-parts":[[2017,9]]},"abstract":"<jats:p>The last few decades has seen an ever-increasing growth in the way activities are productized and associated with a financial cost. This phenomenon, termed financialization, spans all areas including government, finance, health and manufacturing. Recent developments within finance over that past decade have radically altered the way trading occurs. This paper analyses high-frequency trading (HFT) as a necessary component of the infrastructure that makes financialization possible. Through interviews with HFT firms, a software vendor, regulators and banks, the effects of HFT on market efficiency, and its impact on costs to long-term investors are explored. This paper contributes to the literature by exploring the conflict that exists between HFT and traditional market makers in today's fragmented markets. This paper argues that society should be unconcerned with this conflict and should instead focus on the effects these participants have on the long-term investors, for whom the markets ultimately exist. In order to facilitate the best outcomes, regulation should be simple, aimed at keeping participants\u2019 behavior stable, and the interactions among them transparent and straightforward. Financialization and HFT are inextricably linked, and society is best served by ensuring that the creative energy of these market participants is directed on providing liquidity and removing inefficiencies.<\/jats:p>","DOI":"10.1057\/s41265-016-0031-5","type":"journal-article","created":{"date-parts":[[2017,5,31]],"date-time":"2017-05-31T11:34:02Z","timestamp":1496230442000},"page":"270-282","update-policy":"https:\/\/doi.org\/10.1177\/sage-journals-update-policy","source":"Crossref","is-referenced-by-count":11,"title":["High-Frequency Trading and Conflict in the Financial Markets"],"prefix":"10.1177","volume":"32","author":[{"given":"Ricky","family":"Cooper","sequence":"first","affiliation":[{"name":"Stuart School of Business, Illinois Institute of Technology, 565 W. Adams, Chicago, IL 60661, USA;"}]},{"given":"Jonathan","family":"Seddon","sequence":"additional","affiliation":[{"name":"Audencia Business School, 8 Route de la Joneli\u00e8re, B.P. 31222, 44312 Nantes Cedex 3, France"}]},{"given":"Ben","family":"Van Vliet","sequence":"additional","affiliation":[{"name":"Stuart School of Business, Illinois Institute of Technology, 565 W. Adams, Chicago, IL 60661, USA;"}]}],"member":"179","published-online":{"date-parts":[[2017,9,1]]},"reference":[{"key":"bibr1-s41265-016-0031-5","first-page":"124","volume":"3","author":"Alan N. S.","year":"2013","journal-title":"Journal of Portfolio Management"},{"issue":"4","key":"bibr2-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"12","DOI":"10.1109\/MIS.2006.83","volume":"21","author":"Allen C.","year":"2006","journal-title":"IEEE Intelligent Systems"},{"issue":"3","key":"bibr3-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"288","DOI":"10.1016\/j.finmar.2005.03.001","volume":"8","author":"Anand A.","year":"2005","journal-title":"Journal of Financial Markets"},{"key":"bibr4-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"1427","DOI":"10.1017\/S0022109009990421","volume":"44","author":"Anand A.","year":"2009","journal-title":"Journal of Financial and Quantitative Analysis"},{"issue":"4","key":"bibr5-s41265-016-0031-5","first-page":"15","volume":"28","author":"Anderson M.","year":"2007","journal-title":"AI Magazine"},{"key":"bibr6-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1142\/S2010139211000067"},{"issue":"1","key":"bibr7-s41265-016-0031-5","first-page":"94","volume":"29","author":"Asimov I.","year":"1942","journal-title":"Astounding Science Fiction"},{"key":"bibr8-s41265-016-0031-5","first-page":"343","volume":"4","author":"Benos E.","year":"2012","journal-title":"Bank of England Quarterly Bulletin"},{"key":"bibr9-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"747","DOI":"10.2307\/4126742","volume":"38","author":"Bessembinder H.","year":"2003","journal-title":"Journal of Financial and Quantitative Analysis"},{"issue":"3","key":"bibr10-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"6","DOI":"10.3905\/jot.2016.11.3.006","volume":"11","author":"Blocher J.","year":"2016","journal-title":"Journal of Trading"},{"issue":"1","key":"bibr11-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"165","DOI":"10.1016\/j.jfineco.2004.07.001","volume":"75","author":"Bloomfield R.","year":"2005","journal-title":"Journal of Financial Economics"},{"key":"bibr12-s41265-016-0031-5","unstructured":"BoehmerE., FongK.Y., and WuJ.J. (2014). International Evidence on Algorithmic Trading. American Finance Association 2013 San Diego Meetings Paper."},{"issue":"3","key":"bibr13-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"269","DOI":"10.1016\/S1386-4181(01)00014-3","volume":"4","author":"Bondarenko O.","year":"2001","journal-title":"Journal of Financial Markets"},{"key":"bibr14-s41265-016-0031-5","volume-title":"High Frequency Trading and Its Impact on Market Quality.","author":"Brogaard J.","year":"2010"},{"key":"bibr15-s41265-016-0031-5","author":"Brogaard J.","year":"2011","journal-title":"The Activity of High Frequency Traders."},{"key":"bibr16-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1093\/rfs\/hhu032"},{"issue":"1","key":"bibr17-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"16","DOI":"10.1002\/fut.20334","volume":"29","author":"Cao C.","year":"2009","journal-title":"Journal of Futures Markets"},{"key":"bibr18-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1111\/j.1365-2575.2009.00345.x"},{"key":"bibr19-s41265-016-0031-5","unstructured":"CasturaJ., LitzenbergerR., GorelickR., and DwivediY. (2010). Market Efficiency and Microstructure Evolution in US Equity Markets: A High-Frequency Perspective. Working Paper, RGM Advisors LLC, August 30, pp. 1\u201324. finlin.wharton.upenn.edu\/department\/Seminar\/micro\/Litzenberger_transient_vol5_2010.pdf (accessed 20th March 2017)."},{"key":"bibr20-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1017\/beq.2015.41"},{"key":"bibr21-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.3233\/AF-150043"},{"issue":"2","key":"bibr22-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"57","DOI":"10.3905\/jot.2012.7.2.057","volume":"7","author":"Cooper R. A.","year":"2012","journal-title":"Journal of Trading"},{"key":"bibr23-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1007\/s11948-012-9412-5"},{"issue":"5","key":"bibr24-s41265-016-0031-5","first-page":"717","volume":"34","author":"Dehning B.","year":"2003","journal-title":"MIS Quarterly"},{"issue":"1","key":"bibr25-s41265-016-0031-5","first-page":"19","volume":"39","author":"Easley D.","year":"2010","journal-title":"Journal of Portfolio Management"},{"issue":"2","key":"bibr26-s41265-016-0031-5","first-page":"118","volume":"37","author":"Easley D.","year":"2011","journal-title":"Journal of Portfolio Management"},{"key":"bibr27-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.5465\/amr.1989.4308385"},{"key":"bibr28-s41265-016-0031-5","doi-asserted-by":"crossref","DOI":"10.4337\/9781781008263","volume-title":"Financialization and the World Economy.","author":"Epstein G.","year":"2005"},{"key":"bibr29-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1086\/294743"},{"key":"bibr30-s41265-016-0031-5","volume-title":"Introduction to Financial Technology.","author":"Freedman R. S.","year":"2006"},{"issue":"5","key":"bibr31-s41265-016-0031-5","first-page":"1293","volume":"42","author":"Glosten L. R.","year":"1987","journal-title":"Journal of Finance"},{"key":"bibr32-s41265-016-0031-5","unstructured":"GomberP., ArndtB., LutatM., and UhleT. (2011). High-Frequency Trading. papers.ssrn.com\/sol3\/papers.cfm?abstract_id=1858626 (accessed 28th June 2016)."},{"key":"bibr33-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1988.tb04594.x"},{"key":"bibr34-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1995.tb04054.x"},{"key":"bibr35-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1016\/j.finmar.2013.05.003"},{"key":"bibr36-s41265-016-0031-5","doi-asserted-by":"crossref","DOI":"10.4337\/9781781009161","volume-title":"The Macroeconoimic of Finance-Dominated Capitalism\u2014And Its Crisis.","author":"Hein E.","year":"2012"},{"key":"bibr37-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.2010.01624.x"},{"key":"bibr38-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1017\/S0022109013000471"},{"issue":"4","key":"bibr39-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"1053","DOI":"10.1111\/j.1540-6261.1983.tb02282.x","volume":"38","author":"Ho T. S.","year":"1983","journal-title":"Journal of Finance"},{"issue":"1","key":"bibr40-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"14","DOI":"10.1109\/MITP.2009.2","volume":"11","author":"Hurlburt G. F.","year":"2009","journal-title":"IEEE IT Professional"},{"key":"bibr41-s41265-016-0031-5","doi-asserted-by":"crossref","unstructured":"JonesC.M. (2013). What Do We Know About High-Frequency Trading? Columbia Business School Research Paper.","DOI":"10.2139\/ssrn.2236201"},{"issue":"3","key":"bibr42-s41265-016-0031-5","first-page":"424","volume":"75","author":"Katz M. L.","year":"1985","journal-title":"American Economic Review"},{"key":"bibr43-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1007\/s10676-010-9233-7"},{"key":"bibr44-s41265-016-0031-5","volume-title":"Capitalizing on Crisis.","author":"Krippner G. R.","year":"2011"},{"issue":"3","key":"bibr45-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"383","DOI":"10.1080\/14697688.2013.787492","volume":"14","author":"Kumiega A.","year":"2014","journal-title":"Quantitative Finance"},{"issue":"2","key":"bibr46-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"71","DOI":"10.3905\/jot.2016.11.2.071","volume":"11","author":"Kumiega A.","year":"2016","journal-title":"Journal of Trading"},{"key":"bibr47-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1016\/j.jsis.2015.08.002"},{"key":"bibr48-s41265-016-0031-5","unstructured":"London Stock Exchange (LSE) (2015). Rules of the London Stock Exchange. www.londonstockexchange.com\/traders-and-brokers\/rules-regulations\/rules-lse.pdf (accessed 28th June 2016)."},{"key":"bibr49-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.2307\/30036549"},{"key":"bibr50-s41265-016-0031-5","unstructured":"MacKenzieD. (2014). A Sociology of Algorithms: High-Frequency Trading and the Shaping of Markets. University of Edinburgh Working Paper."},{"key":"bibr51-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1111\/j.1540-6261.1970.tb00518.x"},{"key":"bibr52-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.2307\/25148768"},{"key":"bibr53-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1016\/j.finmar.2013.06.006"},{"issue":"3","key":"bibr54-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"571","DOI":"10.1016\/j.finmar.2012.12.003","volume":"16","author":"Menkveld A. J.","year":"2013","journal-title":"Journal of Financial Markets"},{"issue":"4","key":"bibr55-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"18","DOI":"10.1109\/MIS.2006.80","volume":"21","author":"Moor J. H.","year":"2006","journal-title":"Intelligent Systems"},{"key":"bibr56-s41265-016-0031-5","unstructured":"New York Stock Exchange (NYSE) (2014). Designated Market Makers. www.nyse.com\/publicdocs\/nyse\/listing\/fact_sheet_dmm.pdf (accessed 28th June 2016)."},{"key":"bibr57-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1016\/j.jfineco.2015.01.003"},{"key":"bibr58-s41265-016-0031-5","unstructured":"PalleyT.I. (2007). Financialization: What it is and Why it Matters. The Levy Economics Institute of Bard College Working Paper 525. www.levyinstitute.org\/pubs\/wp_525.pdf (accessed 28th June 2016)."},{"key":"bibr59-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"513","DOI":"10.1016\/j.jfineco.2006.11.002","volume":"86","author":"Pannayides M. A.","year":"2007","journal-title":"Journal of Financial Economics"},{"key":"bibr60-s41265-016-0031-5","volume-title":"Arrogant Capital: Washington, Wall Street and the Frustration of American Politics.","author":"Philips K.","year":"1994"},{"key":"bibr61-s41265-016-0031-5","volume-title":"Automation and Ethics. Springer Handbook of Automation.","author":"Ramaswamy S.","year":"2009"},{"key":"bibr62-s41265-016-0031-5","first-page":"1","volume":"61","author":"Seddon J. J. M.","year":"2016","journal-title":"Journal of Business Research"},{"key":"bibr63-s41265-016-0031-5","volume-title":"Interpreting Qualitative Data","author":"Silverman D.","year":"2011","edition":"4"},{"issue":"4","key":"bibr64-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"1133","DOI":"10.1111\/j.1540-6261.1978.tb02053.x","volume":"33","author":"Stoll H. R.","year":"1978","journal-title":"Journal of Finance"},{"key":"bibr65-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1145\/68814.68818"},{"key":"bibr66-s41265-016-0031-5","unstructured":"TABB Forum (2015). It's Not Easy Being an Equities Execution Venue, But That's Not Stopping New Entrants From Trying. tabbforum.com\/opinions\/it's-not-easy-being-an-equities-execution-venue-but-that's-not-stopping-new-entrants-from-trying (accessed 28th June 2016)."},{"key":"bibr67-s41265-016-0031-5","unstructured":"TurbevilleW. (2013). Financialization and a New Paradigm for Financial Markets. www.demos.org\/sites\/default\/files\/publications\/Tuberville.pdf (accessed 28th June 2016)."},{"issue":"3","key":"bibr68-s41265-016-0031-5","doi-asserted-by":"crossref","first-page":"102","DOI":"10.3905\/jot.2013.8.3.102","volume":"8","author":"Van Vliet B.","year":"2013","journal-title":"Journal of Trading"},{"key":"bibr69-s41265-016-0031-5","unstructured":"Wall Street Journal (WSJ) (2010). Dow Takes a Harrowing 1,010.14-point trip. www.wsj.com\/articles\/SB10001424052748704370704575227754131412596 (accessed 28th June 2016)."},{"key":"bibr70-s41265-016-0031-5","unstructured":"Wall Street Journal (WSJ) (2012). Loss Swamps Trading Firm. www.wsj.com\/articles\/SB10000872396390443866404577564772083961412 (accessed 28th June 2016)."},{"key":"bibr71-s41265-016-0031-5","doi-asserted-by":"publisher","DOI":"10.1057\/jit.2014.31"}],"container-title":["Journal of Information Technology"],"original-title":[],"language":"en","link":[{"URL":"http:\/\/link.springer.com\/article\/10.1057\/s41265-016-0031-5\/fulltext.html","content-type":"text\/html","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/journals.sagepub.com\/doi\/pdf\/10.1057\/s41265-016-0031-5","content-type":"application\/pdf","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/journals.sagepub.com\/doi\/pdf\/10.1057\/s41265-016-0031-5","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"},{"URL":"http:\/\/link.springer.com\/content\/pdf\/10.1057\/s41265-016-0031-5.pdf","content-type":"application\/pdf","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2026,4,29]],"date-time":"2026-04-29T23:04:37Z","timestamp":1777503877000},"score":1,"resource":{"primary":{"URL":"https:\/\/journals.sagepub.com\/doi\/10.1057\/s41265-016-0031-5"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2017,9]]},"references-count":71,"journal-issue":{"issue":"3","published-print":{"date-parts":[[2017,9]]}},"alternative-id":["10.1057\/s41265-016-0031-5"],"URL":"https:\/\/doi.org\/10.1057\/s41265-016-0031-5","relation":{},"ISSN":["0268-3962","1466-4437"],"issn-type":[{"value":"0268-3962","type":"print"},{"value":"1466-4437","type":"electronic"}],"subject":[],"published":{"date-parts":[[2017,9]]}}}