Entering a new arena
At 01 Oct 2007 14:12:53 in A-Team Free, A-Team Insight Quarterly, AMIT-Algorithmic Trading, ATIQ-Features, ATIQ-Issue 2 - Q4 2007, AsiaMarketsIT.com, Delivery Terms, ET-Algorithmic Trading, Electronic Trading
By Roger Aitken, Contributing Editor, A-Team Group
With the exponential rise of algorithmic trading in the US and European markets seemingly affirmed, how far beyond equities and into the Asian markets can it go?
The use of algorithmic trading strategies has grown rapidly in Europe during 2006 and into this year. An Edhec Risk Advisory survey revealed recently that 78 per cent of buy side firms were using algorithms, versus 58 per cent in 2004. Certainly, more firms have access to algorithmic trading systems, yet it appears that they still only use them for a small percentage of trades. Edhec’s preliminary survey findings highlight that algorithm deployment among European buy side firms accounted for just three per cent of business, compared to 11 per cent for direct market access (DMA) and 17 per cent for programme trading.
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