PUBLISHER: Allied Market Research | PRODUCT CODE: 1179750
PUBLISHER: Allied Market Research | PRODUCT CODE: 1179750
Algorithmic trading is also referred as black-box trading, automated trading, or algo-trading. It is a method that uses a computer program that follows a defined set of instructions or an algorithm to administer trading activity. An algorithm is fed into a computer program to automatically perform the trade whenever the command is entered. An algorithm can be based on different numbers of input pointers such as price, quantity, timing, or other metrics. It offers several benefits to market participants such as it executes trades at the best possible prices, simultaneous automated checks on multiple market conditions; trades timed correctly & instantly; and reduced transaction costs due to lack of human intervention.
Factors such as rise in demand for reliable, fast, & effective order execution, emergence of favorable government regulations, and the need for market surveillance primarily drive the growth of the global automated algo trading market. In addition, rise in demand for reducing the transaction costs fuels the demand for automated algo trading market. However, insufficient risk valuation capabilities may hamper the market growth to some extent. On the contrary, emergence of AI and algorithms in the financial services is expected to provide lucrative opportunities for the market growth during the forecast period. In addition, upsurge in demand for cloud-based solutions is anticipated to be opportunistic for the market growth during the forecast period.
The automated algo trading market is segmented on the basis of component, deployment mode, enterprise size, application, trading type, and region. By component, it is divided into solution and services. By deployment mode, it is bifurcated into on-premises and cloud. By enterprise size, it is segregated into large enterprises and small & medium-sized enterprises. By application, the automated algo trading market is fragmented into trade execution, statistical arbitrage, liquidity detection, and others. The trade execution segment is further categorized into market maker, Over-the-Counter (OTC) market maker, and Electronic Communications Network (ECN). The market maker sub segment is further divided into agency trade and principal trades. By trading type, the automated algo trading market is classified into stock markets, FOREX, ETF, bonds, cryptocurrencies, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The report analyzes the profiles of key players operating in the automated algo trading market such as 63MOONS, AlgoTrader, Argo Software Engineering, Ava Trade Markets Ltd., India Algo, InfoReach, Inc., LEHNER INVESTMENTS, MetaQuotes Ltd, NinjaTrader, QuantConnect, Software AG, Symphony, Tethys Technology, VIRTU Financial Inc., Tata Consultancy Services Limited, Next Algo, and Myalgomate Technologies LLP. These players have adopted various strategies to increase their market penetration and strengthen their position in the automated algo trading industry.
Key Benefits For Stakeholders
By Component
By Deployment Mode
By Enterprise Size
By Application
By Trading Type
By Region