Revolutionizing High-Frequency Trading: The Impacts of Financial Technology and Data Science Innovations

Title

Revolutionizing High-Frequency Trading: The Impacts of Financial Technology and Data Science Innovations

Creator

Balaji, K.

Description

This paper provides a comprehensive review of various High- Frequency Trading (HFT) strategies and the cutting- edge technologies that underpin them. It explores the latest advancements in financial data science, machine learning, and AI, highlighting their transformative role in reshaping modern trading practices. The paper delves into the algorithmic approaches employed by HFT firms and stock exchanges, including predictive analytics, time- series analysis, pattern recognition, sentiment analysis, and risk management techniques. Through a series of case studies, the paper examines successful implementations of HFT technologies at global exchanges such as the NYSE, NASDAQ, LSE, TSE, and Euronext. It also considers the regulatory and ethical implications of HFT, emphasizing the need for balance between technological innovation, market stability, and fairness. By analyzing these advancements, the paper sheds light on the future trajectory of HFT and its broader impact on financial markets. 2025 by IGI Global Scientific Publishing. All rights reserved.

Source

Machine Learning and Modeling Techniques in Financial Data Science;pp.103-123

Date

01-01-2025

Publisher

IGI Global

Coverage

Balaji K., Christ University, Bengaluru, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISBN: 979-836938188-5; 979-836938186-1;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.4018/979-8-3693-8186-1.ch004

https://www.scopus.com/pages/publications/105007279710?origin=resultslist