... for market power construction in the financial market with those needed in the goods market. The paper selects spoofing, the frequently used order-based tactic in high-frequency trading strategies, to analyze in detail how spoof orders can ignite herding with market power building as the essence. The Flash...

... scales in this analysis, is that most traders would not be able to react to the information generated by the trades themselves. Within the first half second, most market participants cannot react fast enough to impound the information from high-frequency trades into prices [as in the rational...