2010-J-26, Institute for Monetary and Economic Studies, Bank of Japan (in Japanese). 2  See Hendershott, T., C. M. Jones, and A. J. Menkveld, 2011, “Does Algorithmic Trading Improve Liquidity?” The Journal of Finance, forthcoming (February 2011). 3  See Hendershott, T. and R. Riordan, 2009, “Algorithmic Trading and Information,” NET Institute working paper No. 09–08.
BIS Review 160/2010  1  electronically and automatically, according to surveys and recent studies of equity markets. In currency markets, about half of the amount traded is estimated to 3 involve algorithmic trading. 4 Although there is less electronic trading in the Japanese equity market than in the United States and Europe, it is currently a growing focus of attention.