This article was originally published in ChicagoBoothReview
High-frequency trading is a well-known feature of modern finance, but does the astonishing speed at which some firms operate negatively affect markets and investors? Does the technology required to compete with the fastest market participants open the door to oligopolies? Does the risk of "sniping" among high-frequency firms result in worse prices for investors, with no obvious benefits? And can (or should) regulators improve market design for a high-frequency world?
On this episode of The Big Question, Chicago Booth Review's Hal Weitzman talks with Chicago Booth professor of economics Eric Budish, Chicago Trading Company's Steve Crutchfield, and former Commodity Futures Trading Commission commissioner Sharon Bowen about how speed affects financial markets and what, if anything, we should do about it.