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Global Automated Trading Market 2016-2020

Global Automated Trading Market 2016-2020

About Automated Trading Systems

The automated trading systems are also referred to as algorithmic trading or mechanical trading systems where it allows the trader to establish specific rules for both trade entries and trade exits. They are generally programmed in a way so that they can be automatically executed through computer systems. The entry and exit in the trade is based on the moving average crossovers. Sometimes it also requires the understanding of the programming language that is specific to the user’s trading platform. The automated trading requires the use of software that is linked to a direct access broker and the specific rules that are written in the proprietary language in the platform. For instance, the TradeStation platform uses the Easy programming language.

Technavio’s analysts forecast the global automated trading market to grow at a CAGR of 10.31% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global automated trading market for 2016-2020. To calculate the market size, the report considers the net commission earned from automated trading platform providers in the Americas, APAC, and EMEA. The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Automated Trading Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • Citadel
  • KCG
  • Optiver
  • Two Sigma Investments
Other prominent vendors
  • DRW Trading
  • Flow Traders
  • Hudson River Trading
  • Jump Trading
  • RSJ Algorithmic Trading
  • Spot Trading
  • Sun Trading
  • Tower Research Capital
  • Tradebot Systems
  • Virtu Financial
Market driver
  • Increased integration of financial markets
  • For a full, detailed list, view our report
Market challenge
  • Lack of awareness in automated trading
  • For a full, detailed list, view our report
Market trend
  • Advancements in technology
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Automated Trading Market 2016-2020

Technavio recognizes the following companies as the key players in the global automated trading market: Citadel, KCG, Optiver, and Two Sigma Investments.

Other Prominent Vendors in the market are: DRW Trading, Flow Traders, Hudson River Trading, Jump Trading, RSJ Algorithmic Trading, Spot Trading, Sun Trading, Tower Research Capital, Tradebot Systems, and Virtu Financial.

Commenting on the report, an analyst from Technavio’s team said: “Advancements in technology will be a key trend for market growth. The advent of a number of electronic dealing technologies has helped vendors as well as customers to incorporate liquidity aggregation and algorithm trading across different geographies so that they can be easily accessible to a broader range of market participants. This has helped market participants to have better interconnectivity and a more widespread sharing risks so that there can be lower trading costs through quicker execution times. This, in turn, leads to an increase in the total FX turnover. New forms of aggregation like the proliferation of liquidity aggregation that links various liquidity pools of investors through an algorithm are available in the market.”

According to the report, increased integration of financial markets will be a key driver for market growth. The increased integration of global financial markets has helped boost liquidity in global equity markets. Integrated financial markets help domestic investors to buy foreign assets and foreign investors to buy domestic assets with reduced risks involved in such transactions. The regulatory changes have no impact on the functioning of the capital market.

Further, the report states that higher demand for market surveillance will be a challenge for the market. The high demand for market surveillance should drive compliance requirements so that market participants can track their investment patterns and trading activities over the forecast period.



Companies Mentioned

Citadel, KCG, Optiver, Two Sigma Investments, DRW Trading, Flow Traders, Hudson River Trading, Jump Trading, RSJ Algorithmic Trading, Spot Trading, Sun Trading, Tower Research Capital, Tradebot Systems, Virtu Financial.

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Countries covered
      • Table Countries covered for market analysis
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Automated trading overview
    • Advantages of automated trading
      • Table Advantages of automated trading
    • Disadvantages of automated trading
      • Table Disadvantages of automated trading
    • Use of automated trading
      • Table Use of automated trading
    • Basic life cycle in automated trading
      • Table Basic life cycle in automated trading
    • Benefits of automated trading
      • Table Benefits of automated trading
  • Market landscape
    • Market overview
      • Table Automated trading strategies
    • Market size and forecast
      • Table Global automated trading market 2015-2020 ($ billions)
      • Table Key takeaways from HFT
      • Table VIX 2015-2016 (in days)
      • Table S&P 500 2015-2016 (price returns)
    • Five forces analysis
      • Table Five forces analysis
  • Geographical segmentation
    • Table Geographical segmentation 2015 and 2020
    • Americas
      • Table Automated trading market in Americas 2015-2020 ($ billions)
    • EMEA
    • APAC
      • Table Automated trading market in APAC 2015-2020 ($ millions)
      • Table Significant factors in algorithmic trading
  • Market drivers
    • Higher demand for market surveillance
    • Increased integration of financial markets
    • Algorithmic imports in Asia
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Lack of awareness in automated trading
    • Wider bid-ask spread in Asia
    • Insufficient risk valuation capabilities, operational inefficiencies, and limited legal certainty
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Advancements in technology
      • Table Reason for the success of the HFT
      • Table Factors contributing to low latency
      • Table Primary tools for latency arbitrage
      • Table Reasons for upgradation of algorithms
    • Portfolio risk solutions
      • Table Requirements of automated trading
      • Table S&P Capital IQ's Portfolio Risk advanced analytics
    • Early adopters in Asia
  • Vendor landscape
    • Competitive landscape
    • Other prominent vendors
      • Table Other prominent vendors
  • Key vendor analysis
    • Citadel
      • Table Citadel: Business portfolio
    • KCG
      • Table KCG: Product and service portfolio
      • Table KCG: Recent developments
    • Optiver
      • Table Optiver: Service portfolio
      • Table Optiver: Recent developments
    • Two Sigma Investments
      • Table Business divisions
      • Table Two Sigma Investments: Recent development
  • Appendix
    • List of abbreviations
  • Explore Technavio

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