Biais, Bruno; Foucault, Thierry; Moinas, Sophie - Toulouse School of Economics (TSE) - 2013
High-speed market connections improve investors' ability to search for attractive quotes in fragmented markets, raising … gains from trade. They also enable fast traders to observe market information before slow traders, generating adverse … market type on which fast and slow traders coexist and ii) Pigovian taxes on investment in the fast trading technology. …