Using bond futures data, we test whether high-frequency trading (HFT) is engaging in back running, a trading strategy that can create costs for financial institutions. We reject the hypothesis of back running and find instead that HFT mildly improves trading costs for institutions. After a rapid...

Herding relates to behaviour by investors that involves mimicking the public actions and decisions of others rather than following privately held views and information. Herding is widely believed to be an important behavioural feature of financial markets, particularly in times of crisis, but...

This paper analyzes stock market volatility for the financial industry after the TARP (Troubled Asset Relief Program) legislation was passed. The purpose of this paper is to determine how TARP money affected short-term volatility of the market. Data for twenty financial companies which used TARP...