Analysing the market microstructure noise : a nonparametric approach /

Given the rapid development of high-frequency trading strategies in the last two decades, various methods have been proposed for studying return volatility based on high-frequency financial data. However, high-frequency financial data are heavily contaminated by the market microstructure noise compo...

Full description

Bibliographic Details
Main Author: Cui, Wenhao (Author)
Format: eBook
Language:English
Published: London : SAGE Publications Ltd, 2025.
Series:SAGE research methods. Cases
Subjects:
Online Access:Connect to the full text of this electronic book

MARC

Tag First Indicator Second Indicator Subfields
LEADER 00000nam a2200000 i 4500
001 in00005672921
006 m o d
007 cr un|||||||||
008 250110s2025 enka fo 000 0 eng d
005 20251212174746.7
035 |a (OCoLC)on1484950824 
040 |a SGPBL  |b eng  |e rda  |e pn  |c SGPBL  |d OCLCO  |d OCLCQ 
020 |a 9781036209285  |q SAGE Research Methods Cases 
020 |a 1036209288 
035 |a (OCoLC)1484950824 
050 4 |a Q180.55.M4  |b C85 2025 
082 0 4 |a 001.42 
049 |a TXAM 
100 1 |a Cui, Wenhao,  |e author. 
245 1 0 |a Analysing the market microstructure noise :  |b a nonparametric approach /  |c Wenhao Cui. 
264 1 |a London :  |b SAGE Publications Ltd,  |c 2025. 
300 |a 1 online resource :  |b illustrations. 
336 |a text  |b txt  |2 rdacontent 
337 |a computer  |b c  |2 rdamedia 
338 |a online resource  |b cr  |2 rdacarrier 
490 1 |a SAGE research methods. Cases 
520 8 |a Given the rapid development of high-frequency trading strategies in the last two decades, various methods have been proposed for studying return volatility based on high-frequency financial data. However, high-frequency financial data are heavily contaminated by the market microstructure noise component, which arises due to imperfections in the trading system. Motivated by this, we decided to investigate market microstructure noise and its impact on the price process. With this goal in mind, this project starts with the realization that the observed price process consists of three components: the efficient price, the explicative noise, and the residual noise. Several existing methods were combined to study each component individually. In practice, we found it crucial to preprocess the data to reduce the negative impact of outliers and errors. After cleaning the data, we were able to draw economically meaningful conclusions and gain a better understanding of the mechanism of price formation. This process led to a deeper understanding of utilizing high-frequency financial data and appealed to audiences with diverse backgrounds. 
588 |a Description based on XML content. 
650 0 |a Research  |x Methodology  |v Case studies. 
650 0 |a Finance  |x Data processing  |v Case studies. 
650 6 |a Recherche  |x Méthodologie  |v Études de cas. 
650 6 |a Finances  |x Informatique  |v Études de cas. 
655 7 |a Electronic books.  |2 local 
830 0 |a SAGE research methods. Cases 
856 4 0 |u http://proxy.library.tamu.edu/login?url=https://methods.sagepub.com/case/analysing-the-market-microstructure-noise-a-nonparametric-approach  |z Connect to the full text of this electronic book  |t 0 
936 |a BATCHLOAD 
955 |a SAGE Research Methods Cases 1 
994 |a 92  |b TXA 
999 f f |s 0e55a300-c780-48ab-8b39-50e159b1d6b4  |i 3695bb08-a862-414c-abc0-d5b252414376  |t 0 
952 f f |a Texas A&M University  |b College Station  |c Electronic Resources  |d Available Online  |t 0  |e Q180.55.M4 C85 2025  |h Library of Congress classification 
998 f f |a Q180.55.M4 C85 2025  |t 0  |l Available Online