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https://www.ecb.europa.eu/press/research-publications/resbull/2020/html/ecb.rb201215~210477c6b0.en.html https://www.ecb.europa.eu/press/research-publications/re

https://www.ecb.europa.eu/press/research-publications/resbull/2020/html/ecb.rb201215~210477c6b0.en.html https://www.ecb.europa.eu/press/research-publications/resbul... Conclusions and policy implications To return to our initial question: does stock market liquidity deteriorate when HFTs compete? The results suggest that competition among HFTs increases speculative high-frequency trades, which could lead to a deterioration in market liquidity.

gruez 2y ago
Taking the study at face value, it only says that competition among HFT is bad. It also specifically admits that "As market-makers, they can update their price quotes fast when news arrives and provide liquidity to the market. In this case, the low-frequency traders in the market – the investors – benefit from lower transaction costs". In other words, at best it's advocating for some sort of monopoly for HFT, rather than getting rid of HFTs entirely.