Question: (a) Based on the OECD content covered in class, critically evaluate the role of algorithmic trading, high-frequency trading, and artificial intelligence in innovating and shaping
(a) Based on the OECD content covered in class, critically evaluate the role of algorithmic trading, high-frequency trading, and artificial intelligence in innovating and shaping financial markets. In your response, frame this as an ethical dilemma: to what extent do these innovations improve market efficiency, transparency, and liquidity, and to what extent do they create risks of unfair advantage, market manipulation, market instability, as well as the exclusion of less technologically advanced participants? Discuss how regulators, policymakers, and market participants should navigate this tension between innovation and fairness and propose how ethical principles should guide the deployment of these technologies in financial markets
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