The evolution of price discovery in an electronic market

We study the evolution of price discovery process in euro-dollar and dollar-yen currency pairs over a ten-year period on EBS platform, global trading venue used by both manual automated traders. find that importance market orders decreases sharply period, owing mainly to decline information share from trading, while algorithmic high-frequency traders remains fairly constant. At same time, there is substantial, but gradual, increase limit orders. Price also becomes faster, suggesting improvements efficiency. The results are consistent with theoretical predictions lower advantage, informed tend use more