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Article: Trading: Algorithms Headed for New Frontiers: Advanced matrices for equity transactions are being applied to other financial instruments, such as options, futures and foreign exchange. And you thought the game was competitive before.
- Article from:
- Bank Technology News
- Article date:
- April 1, 2005
- Author:
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Automated electronic trading powered by sophisticated algorithms is not just for equities anymore. The tools, which use complex mathematical equations to determine market-optimal and cost-effective trading strategies, are set to aid more in the trading of options, futures, foreign exchange and even fixed income.
The moves result from multiple factors impacting these sectors, including the outsize growth in their trading volumes, market fragmentation from boosts in electronic transacting, increased demand for multi-asset class or "side-by-side" trading, and rising industry and regulatory efforts aimed at improving their competitive market structures in line with ...