Morris, Jeremy2023-12-182023-12-1820232023-12-18http://hdl.handle.net/1828/15724Insider trading plays a significant role in financial markets and how markets respond to new information. Informed high-frequency traders pose a major risk to liquidity providers in financial markets due to adverse selection, which can result in market failure. To mitigate this risk, some exchanges have implemented speed bumps which delay trades. Using trade and quote (TAQ) data of 45 stocks on the NYSE American and the NASDAQ from May 2017 to August 2017, I identify the impact of a trading delay of 350 microseconds on the probability of informed trading for the NYSE American using difference-in-differences estimation. I find a statistically significant decline in the probability of informed trading after the implementation of the speed bump on the NYSE American stock exchange.enAvailable to the World Wide Webfinancial economicseconomicshigh-frequency tradinglatency delaymicroeconomicsmarket microstructuredifference-in-differencesNYSE Americanequity marketslatencyNASDAQfinancial marketsapplied microeconomicsThesis