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High-frequency trading does not raise futures volatility -study

From reuters.com

Volatility in futures contracts has remained largely stable in the face of increased participation from high-speed and algorithmic traders often blamed for roiling markets, according to a study issued on Tuesday. The study, released by the Futures Industry Association, examined volatility from roughly 2006 to 2011 in 15 futures contracts traded on platforms run CME Group Inc, IntercontinentalExchange Inc, Deutsche Boerse AG's Eurex, and NYSE Euronext's Liffe. The exchange operators sponsored the study. It found there is "no evidence to suggest that realized return volatility in electronically-traded futures ... (full story)

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