Study finds ‘speed bumps’ help protect ordinary investors

Author: The Wall Street Journal

Finance professor Robert Battalio was quoted in a Wall Street Journal article about a new study that indicates brief delays in stock trading can help protect ordinary investors from high-frequency traders.

Other factors could explain why trading costs declined over the period that Mr. Hu examined, including the fact that stock prices were going up. Stock prices are a part of the ratio for calculating trading costs, and as they rise, that ratio would fall, said Robert Battalio, a finance professor at the University of Notre Dame.

"It's an interesting study, but there are other factors that need to be ruled out," Mr. Battalio said.