The Investment Industry Regulatory Organization of Canada (IIROC) has selected the fourth and final team to assess the impact of high-frequency trading (HFT) on Canadian equity markets.

The recent selection is part of the last phase of IIROC’s HFT study and follows the announcement of three other project teams earlier this year. The work of the first three teams will publish by the end of this year, and the work of the fourth team will be released by June 2015.

This last team comprises two University of Toronto professors (Andreas Park and Katya Malinova), along with a professor from the University of Melbourne in Australia (Carole Comerton-Forde). They have experience in studying, teaching and publishing reports about high-speed trading, algorithmic trading and other market structure issues.

The three professors will conduct two studies; the first will examine how the release of dark liquidity rules in Canada in 2012 has impacted high-frequency traders and the market as a whole, while the second will focus on how those rules have impacted price efficiency, discovery and volatility.

“We’re using empirical data and objective study to better understand the impact of HFT on market integrity and quality, as well as on overall investor confidence,” says Wendy Rudd, senior vice-president of market regulation at IIROC.

This story was originally posted on our sister site, Advisor.ca.

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Copyright © 2020 Transcontinental Media G.P. Originally published on benefitscanada.com

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