Can investors keep up with electronic markets?

August 14, 2012 | Last updated on August 14, 2012
1 min read

The speed and complexity of electronic markets has continued to change at a rapid pace, with The New York Times reporting trade times are now measured in millionths of a second.

Despite the benefits of cheaper and speedier trading, though, recent studies suggest there may be some major drawbacks for investors.

Read: The limits of liquidity

Not only are transaction costs inching up—low fees are one of the main advantages of digital trading—the increasing number of major market malfunctions has caused investors to take a step back; they’re questioning the stability of evolving market technology.

Faster trading is also forcing market players to constantly upgrade their infrastructure, and race to keep up with competition. Read more.

Read: Concerns about high-frequency trading

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ETFs blamed for excessive volatility

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