The Future of Algo Trading

The Future of Algo Trading

Capital Markets CIO Outlook | Monday, January 21, 2019

One of the reasons why algorithmic trading is so popular is the advantages it has over manual trading. The benefits of algo trading relate to speed, accuracy, and cost reduction. Since algorithms are written in advance and automatically executed, speed is the main advantage. The speed at which these trades are carried out is measured in fractions of a second faster than people can see. A computer executes a trade automatically; the obstacles of accidentally entering the wrong trade associated with human trades could be eliminated.

Traders can find it hard to know what parts of their trading system work and what doesn’t work because they can’t run their system on previous data. With algo trading, consumers can run the algorithms based on data from the past to see if it worked in the past.

According to Credence Research, a market research consulting firm, in 2017, global algorithmic trading software’s market value was at approximately $1.67 billion, indicating the growing faith of investors in such software. On this basis, Credence projected an increase in the market value of software to $26.1 billion by 2026. Algorithmic trading for the stock market by far leads the overall market value segment and is expected to continue its success next year.

Check out this : Top 10 Trading Solution Providers - 2018 (, PanXchange, Pragma Securities )

Catalyst is a powerful algorithmic crypto-asset investment platform and infrastructure; it enables users to concentrate on developing and implementing new strategies without having to worry about data storage/streaming mechanics, exchange-specific order entry codes and other tedious obstacles.

The North American region is known for its initiative to accept new technology, and algorithmic commerce is no exception. North America is currently considered the torchbearer in the worldwide market for algorithmic trading software with the largest market share.

The Asia-Pacific market is thought to be fast-growing, as the largest stock exchange in this region accepts new forms of trading. Such trading alternatives have been welcomed and encouraged by organizations in India such as the National Stock Exchange, Securities Exchange Board of India (SEBI), a regulator for the securities market in India. AlgoTrader GmbH, Trading Technologies International, Inc., Automated Trading SoftTech Pvt. Ltd., Software AG, Thomson Reuters Corporation, uTrade, and Vela Trading Systems LLC are some of the most prominent software and service providers.

Weekly Brief