这是什么考点？没有印象了，在哪里？

问题如下：

Bloomfield shifts the conversation to AXZ Corp. Bloomfield notes that AXZ’s bid–ask spread is narrow, even though AXZ’s share price has been experiencing a period of high volatility. After extensive research, Bloomfield will purchase AXZ shares using a trading strategy that does not include standing orders.

Bloomfield’s trading strategy for the purchase of AXZ shares most likely includes the use of:

选项：

A.

flickering quotes.

B.

machine learning.

C.

leapfrogging quotes.

解释：

A is correct.

Flickering quotes are exposed limit orders that electronic traders submit and then cancel shortly thereafter, often within a second. Electronic dealers and algorithmic buy-side traders submit and repeatedly cancel and resubmit their orders when they do not want their orders to stand in the market; rather, they want other traders to see that they are willing to trade at the displayed price. Bloomfield does not want his orders to stand in the market; using flickering quotes to purchase AXZ shares would satisfy that objective.

B is incorrect because AXZ shares are currently in a period of high volatility, so Bloomfield would not likely use machine learning to execute his trades. Machine-learning systems frequently do not produce useful information during volatility episodes because these episodes have few precedents from which the machines can learn. Machine-learning methods produce models based on observed empirical regularities rather than on theoretical principles identified by analysts. Many traders shut down when volatility spikes, both because highvolatility episodes are uncommon and thus not well understood and because even if such episodes were well understood, they represent periods of exceptionally high risk.

C is incorrect because market participants use leapfrogging quotes when spreads are wide (not narrow), and Bloomfield noted that the bid–ask spread for AXZ shares is narrow. When bid–ask spreads are wide, dealers often are willing to trade at better prices than they quote. They quote wide spreads because they hope to trade at more favorable prices. When another trader quotes a better price, dealers often immediately quote an even better price. If the spread is sufficiently wide, a game of leapfrog may ensue as the dealer jumps ahead again.