This discussion paper summarises MBIE’s findings from the review of the Credit Contacts and Consumer Finance Act 2003 (CCCFA).
Heterogeneity in the effects of algorithmic and high-frequency traders on institutional transaction costs
The net effects of algorithmic and high-frequency traders mask considerable heterogeneity in how they impact institutional transaction costs. Using regulatory data, we analyze the heterogeneity across individual trading accounts. We develop a method to identify subsets of traders causally related to higher institutional transaction costs...