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| Type | Bachelor's Thesis |
| Scope | Discipline-based scholarship |
| Title | High-Frequency Trading and the Flash Crash |
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| Institution | University of Zurich |
| Faculty | Faculty of Economics, Business Administration and Information Technology |
| Number of Pages | 49 |
| Date | 2015 |
| Abstract Text | Nowadays, over 50% of U.S. stock trading volume is driven by high-frequency trading. This new trading form has changed dynamics of the markets. Stock liquidity, price volatility, and price discovery have altered due to the fact that information about firms immediately penetrates the market. However, research notes positive and negative effects, but the overall implications on welfare remain unclear. Regarding the events that happened on May 6th, 2010, the so-called Flash Crash, in which U.S. stock market suffered the biggest loss on an intraday basis: The impact on the Standard and Poor’s 500 Index is examined. The results reveal that the top 100 firms in the index were more adversely affected by the crash than the bottom 100. |
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