Global Algorithmic Trading Market 2016-2020

  • ID: 3769514
  • Report
  • Region: Global
  • 78 pages
  • TechNavio
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FEATURED COMPANIES

  • Citadel
  • Flow Traders
  • Jump Trading
  • Optiver US
  • Spot Trading
  • Tower Research Capital
  • MORE
About the Algorithmic Trading Market 2016-2020

Modern financial markets use advanced mathematical models to arrive at (and execute) transaction decisions. Such automated technologies are referred to as high-speed algorithmic trading. These methods determine the optimal time for an order to be placed so as to generate the least impact on stock prices. Large institutional investors use algorithmic trading technologies to buy and sell large blocks of shares in small tranches every day. These technologies allow users to use the best possible pricing without any significant impact on purchasing costs.

The analysts forecast the global algorithmic trading market to grow at a CAGR of 10.3% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global algorithmic trading market for 2016-2020. To calculate the market size, the analyst considers the revenue generated from the total consumption of algorithmic trading globally.

The market is divided into the following segments based on geography:

- Americas
- APAC
- EMEA

The report, Global Algorithmic Trading Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
- Citadel
- KCG
- Optiver US
- Tower Research Capital
- Two Sigma Investments

Other prominent vendors
- DRW Trading
- Flow Traders
- Hudson River Trading
- Jump Trading
- RSJ Algorithmic Trading
- Spot Trading
- Sun Trading
- Tradebot Systems
- Virtu Financial

Market drivers
- Increased integration of financial markets

Market challenges
- Insufficient risk valuation capabilities, limited legal certainty, and operational inefficiencies

Market trends
- Portfolio risk solutions

Key questions answered in this report
- What will the market size be in 2020 and what will the growth rate be?
- What are the key market trends?
- What is driving this market?
- What are the challenges to market growth?
- Who are the key vendors in this market space?
- What are the market opportunities and threats faced by the key vendors?
- What are the strengths and weaknesses of the key vendors?

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FEATURED COMPANIES

  • Citadel
  • Flow Traders
  • Jump Trading
  • Optiver US
  • Spot Trading
  • Tower Research Capital
  • MORE
PART 01: Executive summary
  • Highlights
PART 02: Scope of the report
  • Market overview
  • Top-vendor offerings
PART 03: Market research methodology
  • Research methodology
  • Economic indicators
PART 04: Introduction
  • Key market highlights
  • Definition of algorithmic trading
  • Benefits of algorithmic trading
  • Use of algorithmic trading
PART 05: Market landscape
  • Market overview
  • Market size and forecast
  • Five forces analysis
PART 06: Global market outlook

PART 07: Geographical segmentation
  • Geographical segmentation 2015
  • Geographical segmentation 2020
  • Americas
  • EMEA
  • APAC
PART 08: Market drivers
  • Increased integration of financial markets
  • Algorithmic imports in Asia
  • Higher demand for market surveillance
PART 09: Impact of drivers

PART 10: Market challenges
  • Insufficient risk valuation capabilities, limited legal certainty, and operational inefficiencies
  • Wider bid-ask spread in Asia
  • Lack of awareness in algorithmic trading
PART 11: Impact of drivers and challenges

PART 12: Market trends
  • Portfolio risk solutions
  • Early adopters in Asia
  • Technological advancements
PART 13: Vendor landscape
  • Competitive landscape
  • Other prominent vendors
PART 14: Key vendor analysis
  • Citadel
  • KCG
  • Optiver
  • Tower Research Capital
  • Two Sigma Investments
PART 15: Appendix
  • List of abbreviations
PART 16: About the Author

List of Exhibits

Exhibit 01: Countries covered for market analysis
Exhibit 02: Product offerings
Exhibit 03: Benefits of algorithmic trading
Exhibit 04: Use of algorithmic trading
Exhibit 05: Algorithmic trading strategies
Exhibit 06: Global algorithmic trading market 2015-2020 ($ billions)
Exhibit 07: Key takeaways from HFT
Exhibit 08: VIX 2015-2016 (in days)
Exhibit 09: S&P 500 2015-2016 (price returns)
Exhibit 10: Five forces analysis
Exhibit 11: Global algorithmic trading market by geography 2015
Exhibit 12: Global algorithmic trading market by geography 2020
Exhibit 13: Algorithmic trading market in Americas 2015-2020 ($ billions)
Exhibit 14: Algorithmic trading market in EMEA 2015-2020 ($ billions)
Exhibit 15: Algorithmic trading market in APAC 2015-2020 ($ millions)
Exhibit 16: Significant factors in algorithmic trading
Exhibit 17: Impact of drivers
Exhibit 18: Impact of drivers and challenges
Exhibit 19: Other prominent vendors
Exhibit 20: Citadel: Business portfolio
Exhibit 21: KCG: Product and service portfolio
Exhibit 22: Optiver: Service portfolio
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FEATURED COMPANIES

  • Citadel
  • Flow Traders
  • Jump Trading
  • Optiver US
  • Spot Trading
  • Tower Research Capital
  • MORE
New Report Released: - Global Algorithmic Trading Market 2016-2020

The author of the report recognizes the following companies as the key players in the global algorithmic trading market: Citadel, KCG, Optiver US, Tower Research Capital, 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, Tradebot Systems, and Virtu Financial.

Commenting on the report, an analyst from the research team said: “One trend leading to the strong growth of this market is the advent of portfolio risk solutions. Many global vendors offer risk and scenario analytics for hedging, real-time pricing, and capital management of multi-asset portfolios. This unique tool provides a transparent and detailed solution to clients and investors to invest in specific markets or instruments. Finance professionals that deal with finance products use credit data and deal information to produce cash flows and analytics at the portfolio level.”

According to the report, one driver leading to the impressive growth of the market will be the increased integration of financial markets. The increased integration of financial markets has helped surge liquidity in the equity market. Integrated financial markets help domestic investors buy foreign assets and foreign investors buy domestic assets at reduced risks. Regulatory changes also do not have an impact on the functioning of the capital market. The involvement of different international markets has led to the efficient global allocation of savings for future use. This aids different countries in creating an opportunity for portfolio diversification and risk sharing.

Further, the report states that wider bid-ask spread in Asia will act as a major challenge for this market. Asia faces different issues in implementing algorithmic trading due to its wider bid-ask spreads in different stocks. In markets such as Singapore, the average dealing spread for stocks is around 70 basis point (bp). So while the actual display liquidity in the market can be large, it can be extremely difficult to trade there because of the equally large spreads.

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.
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- Citadel
- KCG
- Optiver US
- Tower Research Capital
- Two Sigma Investments
- DRW Trading
- Flow Traders
- Hudson River Trading
- Jump Trading
- RSJ Algorithmic Trading
- Spot Trading
- Sun Trading
- Tradebot Systems
- Virtu Financial.
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