Unfolding High-Frequency Trading through the Lens of Responsible AI

• In Event: OPERATIONS FINANCE INTERFACE: Application of AI in Financial Services

Abstract

Algorithmic trading in the financial market has become a norm. High-Frequency Trading (HFT) has drawn attention among scholars due to its unique nature as a part of that algorithmic trading. Slight algorithm tampering can severely impact the financial market's interrelated stakeholders and exchanges, to protect the financial market's stakeholders' interest, comprehensive implementation of responsible AI in the financial market is necessary. As a result, this paper examines the HFT through the lens of responsible AI. Moreover, this paper proposes a framework for responsible AI that includes equity, human control and real-time monitoring, accountability, transparency, and respect for finance fundamentals.

Authors

• Mohotarema Rashid, University of North Texas

• MD RASEL AL Mamun, Old Dominion University