Chapter 7

High-Frequency Trading on Asian Exchanges

Michael Syn,    Head of Derivatives, Singapore Exchange, Singapore,    michael.syn@sgx.com

Abstract

This chapter reviews the salient issues and mechanisms involved in high-frequency trading (HFT), as well the evolution of HFT on developed Asian exchanges, using examples of futures markets in Singapore and the cash equity market in Japan.

Keywords

HFT; High-frequency trading; Algorithmic; Market making; Asia; Trading

7.1 Introduction

High-frequency trading (HFT) has received scrutiny in regulatory, political, and investor forums, particularly after the “Flash Crash” of May 2010. Concern is currently focused on US and European marketplaces which have significantly different market structures from Asia. ...

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