1. Alternatively, a short position is taken on an asset and subsequently it is unwound by buying the asset at a lower price. Market making works on a similar principle as the market maker buys at the lower bid price and sells at the higher ask price, thus realising as profit the bid-ask spread.
2. At that time the term HFT had not been coined yet. It was known as ‘computer-based trading’ or something close to that.
3. IOSCO (2011) Regulatory issues raised by the impact of technological changes on market integrity and efficiency, July, http://www.world-exchanges.org/news-views/iosco-consultation-report-regulatory-issues-raised-impact-technological-changes-market , accessed 5 June 2012.
4. Brown, E. (2010) Computerized front running, another Goldman-dominated fraud, Counterpunch, http://www.counterpunch.org/2010/04/23/computerized-front-running/11/1/2013 , accessed 21 April.
5. Clark, C. (2012) How to keep markets safe in the era of high-speed trading, Chicago Fed Letter, No 303, October.