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:
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.
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.
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