Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the effect of high frequency trading strategies on the resilience of UK financial markets.
The Government Office for Science, sponsored by HM Treasury, published its Foresight Project report in October 2012, analysing the role, development, and impact of computer-based trading – including high frequency trading – in financial markets.[1] The report highlighted the benefits of computer-based trading for the operation of markets, in particular relating to liquidity, transaction costs, and the efficiency of market prices, while also considering the implications for financial stability.
[1] Government Office for Science, Future of computer trading in financial markets (October 2012) https://www.gov.uk/government/publications/future-of-computer-trading-in-financial-markets-an-international-perspective