Terrence Hendershott

Papers

Total Citations

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About

Terrence Hendershott is a leading scholar in market microstructure and financial technology, whose research has fundamentally shaped our understanding of how computer-based trading affects financial markets. His most-cited work, "The Future of Computer Trading in the Financial Markets" (2011, 9 citations), provides a pivotal analysis of high-frequency trading (HFT), demonstrating that while economic evidence does not directly link computer-based trading to increased volatility, specific self-reinforcing feedback mechanisms can trigger significant instability. This nuanced contribution has been instrumental in guiding both academic debate and regulatory policy around algorithmic trading. Hendershott’s broader research portfolio explores the design of electronic markets, the impact of latency on trading behavior, and the role of liquidity provision in modern exchanges. His work is widely recognized for bridging theoretical models with empirical rigor, earning him a reputation as a key voice in the evolution of financial infrastructure. For students and researchers, Hendershott’s insights offer a critical lens on the intersection of technology and finance, highlighting both the efficiencies and risks of automated trading systems.