Terry Hendershott on High-frequency Trading

When data identifying the investor or trader involved in each algorithmic trading transaction finally started to become available in 2005, Finance Professor Terrence Hendershott began studying the effect of high frequency trading on the market and price efficiency. Hendershott believes HFT is the application of technology to many traditional short-term speculative strategies. In this video, Prof. Hendershott weighs in on whether high-frequency trading is good, bad, or simply inevitable. Watch the video.