Algorithmic trading continues to increase, despite doubts in the market, according to a report from Aite Group. The latest report provides an update on the algorithmic trading market and identifies market trends and challenges. It says the adoption of first-generation algorithms has ended, for brokers are looking for more developed algorithms capable of supporting portfolio trading, adjusting to real-time changing markets and seeking pools of liquidity.
“The role of the buy-side trader has become very complicated,” says Brad Bailey, a senior analyst at Aite Group and co-author of the report. “There are so many routes to getting trades done and finding liquidity; the landscape for trading is evolving quickly, as are algorithms.”