Reflexivity/endogenity: from HFT to bubbles and crashes

Didier Sornette, ETH Zürich

In this lecture, Didier Sornette presents a partial review of the potential for market bubbles and crashes? associated with high-frequency trading (HFT). The analysis aims to complement the academic literature on this topic, drawing on both conceptual frameworks and indicative evidence observed in the markets.

Instabilities in Financial Markets | Symposium for the 202nd Anniversary of the Founding Decree of the Scuola Normale Superiore | October 19, 2012 | Sala Azzurra