Over the past decade, electronic trading and the use of automated code or algorithms to generate orders with execution times consisting of microseconds or milliseconds, otherwise known as high frequency trading, has largely replaced human floor brokers and market markers.  High frequency trading is now being reviewed by the SEC and is the subject of the CFTC’s proposed Regulation Automated Trading.  Derivations recently published an article examining high frequency trading’s risks to securities and derivatives markets, as well as potential benefits in the form of lower overall trading costs and improved resilience due to enhanced pre-trade risk controls and system safeguards.  Our article appears in the January – March 2017 issue of Risk & Compliance Magazine, a publication of Financier Worldwide.  Please click on the link to read the article: High Frequency Trading.The Path Forward for Market Liquidity and Stability.