> But on the flip side, nobody has ever really demonstrated strong negative effects from HFT and many studies show positive effects If interested, this is a pa

> But on the flip side, nobody has ever really demonstrated strong negative effects from HFT and many studies show positive effects If interested, this is a paper published in January 2023 called "Does high-frequency trading actually improve market liquidity? A comparative study for selected models and measures" [0]. And the abstract notes: "By comparing a variety of regression models that associate various measures of market liquidity with measures of high-frequency activity on the same dataset, we find that for some models the increase in high-frequency activity improves market liquidity, but for others, we get the opposite effect. We indicate that this ambiguity does not depend only on the stock market or the data period, but also on the used HFT measure: the increase of high-frequency orders leads to lower market liquidity whereas the increase in high-frequency trades improves liquidity. We hypothesize that the observed decrease in market liquidity associated with an increasing level of high-frequency orders is caused by a rise in quote volatility." [0] [0]: https://www.sciencedirect.com/science/article/pii/S0275531922002586 https://www.sciencedirect.com/science/article/pii/S027553192...