Speeding up the exchange does not necessarily improve liquidity. The price quotes of high-frequency market makers are … more likely to meet speculative high-frequency "bandits", thus less likely to meet liquidity traders. The bid-ask spread is …

the role of designated liquidity providers played by high-frequency traders (HFTs) as introduced by the forthcoming MiFID … II regulation. I find that HFTs do provide liquidity to the market, but strategically so, to avoid being adversely … selected by other fast traders when providing liquidity to them. Conversely, when they provide liquidity to slow traders, there …

A growing number of blockchain-based decentralized exchanges have adopted automated market makers to attract liquidity …, and they replace the traditional order book system for trade execution. This paper studies the equilibrium liquidity … model derives the optimal behavior of liquidity providers and the aggregate size of the liquidity pool on a constant product …