Mao Ye, Chen Yao and Jiading Gai of the University of Illinois at Urbana-Champaign found that “exogeneous technology shocks that increase the speed of trading from microseconds to nanoseconds dramatically increase” order cancellation rates and found “evidence consistent with quote stuffing.”
“As speed is of value to a trader, it is almost equally valuable to slow his competitors down,” the researchers said in their paper The Externality of High Frequency Trading.
via Securities Technology Monitor – Quote Stuffing Aims to Slow Rivals.