How is the Influence of Algo Trading Solutions Evolving?

How is the Influence of Algo Trading Solutions Evolving?

By Capital Markets CIO Outlook | Monday, April 13, 2020

The popularity that algorithmic trading has seen in the sphere of equities is now set to be replicated across other trading domains.

FREMONT, CA: The world of trading has been witnessing unparalleled advancement. Propelled by carefully crafted digital solutions that boost the capabilities of traders and trading firms, the industry is making significant strides. Algorithmic trading has been the biggest facilitator when it comes to modern trading. Over the last few years, trading of equities has evolved in accordance with the developments in algo trading technology. Today, along with equities, foreign exchange and fixed income traders are also looking forward to algorithmic capabilities. This is poised to keep electronic trading growing in the coming years.

Top 10 Algo Trading Solution Companies - 2020Algorithms empower traders to carry out trading in a highly efficient manner while ensuring costs are minimized. The efficiencies are valid both from the perspective of intelligence and time. The processes that would previously take hours or days are now successfully wrapped up within minutes. Such has been the influence of these technological breakthroughs that equity traders are today considering algo trading solutions to be an indispensable part of their operational capability. Slowly, with the rising adoption of algorithms in fixed income and forex, virtual capabilities for price discovery and workflow efficiencies will become the norm.

Every trader is today vying to leverage advanced technologies like artificial intelligence, data analytics, and automation. Electronic trading entitles traders to these technologies. The resulting advantages like self-directed trading, automated audit-trailing, and seamless reconciliations make electronic trading a real value addition. For smaller, as well as larger traders, investing in algorithmic trading is, therefore, the next step towards competitiveness and growth.

The road to adopting algo trading solutions comes with its own set of obstacles. Traders have to repurpose or replace systems and invest in training. However, the long term benefits from algo trading are considered lucrative enough, and therefore, traders are ready to optimize infrastructure and maximize returns. 

See also: Top Artificial Intelligence Companies

Weekly Brief

Top 10 Trading Solution Companies - 2019