Investigating fast money
Nowadays, tiny fractions of seconds can make the difference between profit and loss on international stock exchanges. High-frequency trading moves enormous sums around at speeds that humans can barely imagine. It’s a business that is almost uncontrollable -- and highly risky. In our short video, economist Daniel Friedman of the University of California, Santa Cruz, who holds the research professorship in Market Design at the WZB, briefly summarises his research. Can his work help to put the brakes on high-frequency trading?