Does high frequency trading harm financial markets?

Andriy Shkilko research securities trading and financial markets. He studies competition among equity and options exchanges, information dissemination, price pressures, institutional trading, insider trading, short selling, and trade classification.

“My work may result in changes to regulation that governs financial markets and to the behavior of market participants,” he says. “Ultimately, better markets lead to better investment outcomes.”

In addition to seeing value in the research, Shkilko also finds the work satisfyingly thought-provoking.

“It is exciting to see how technology has changed financial markets from being 100% human-driven to being close to 100% machine-driven. There is an exceptionally hot debate on whether these changes have been positive. It is intriguing to try and understand which side of the debate is right,” he says.

His award-winning research has been honoured by the American Association of Individual Investors, Toronto CFA Society and Hillsdale Investment Management, the RS-DeGroote Conference on Market Structure and Market Integrity and many other private and public institutions.

“Financial markets are always changing in response to new regulation and new science,” he says. “A complete understanding will probably never happen. That said, research in finance has uncovered many ways to optimize existing financial structures, thereby making markets better.”

He says the perennial challenge is that the market itself, which he refers to as “the opponent” reacts to new insights, and changes accordingly.

Shkilko has edited a special issue on short selling for the International Journal of Managerial Finance and has acted as reviewer for a number of academic journals. In addition, he has chaired the Market Structure track for the Mid-Atlantic Research Conference in Finance (MARC) and has twice co-chaired the Investments track for the Eastern Finance Association annual meetings.

Shkilko has consulted for the government of the United Kingdom and those of British Columbia, New Brunswick, and Ontario. He is also the faculty coach for the WLU Jeux du Commerce (Commerce Games) finance team.

 

Andriy Shkilko

Andriy Shkilko

Wilfrid Laurier University

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