A shift toward computerized buying and selling has taken place over several years, and the market is "finally" maturing, according to Kevin McPartland.
The trading community has reached an “equilibrium,” at least for now. According to a recent Greenwich Associates spending report, buy-side trading room budgets are, likewise, finding their center and have up-ticked slightly.
New report from Greenwich Associates reveals trading desk budgets now favouring technology over trader compensation.
“These are the levels that, in aggregate, the buy side feels are the appropriate mix to optimally manage their order flow,” said Richard Johnson.
Un rapport du cabinet de consultants Greenwich Associates relevait récemment l’expansion du trading algorithmique, notamment en ce qui concerne le marché des changes et celui des titres obligataires.
A report by Greenwich Associates last week found more investors were increasingly using their own algorithms to trade on markets, rather than using their broker.
David Stryker said that although only 10% of foreign-exchange traders trade using an algorithm, a quarter of the largest institutions use them. “Over coming years, the market for FX algos will look more and more like equities.”
According to a report this week from Greenwich Associates, titled “The Evolution of FX Algos: From ‘Nice to Have’ to ‘Need to Have’”, algorithmic trade execution in foreign exchange is set to rise in the next few years.
Greenwich Associates estimates that the regulatory change has shrunk the market for European equity research by an annual $300 million, a figure the financial services advisory firm says could climb still higher before the year is out.
A new report from Greenwich Associates sees algorithmic execution becoming “increasingly popular” among FX traders.
