Algorithmic trading is a well recognised feature of futures and options markets, but many believe that despite its high profile, the technique is still only beginning to make itself felt. If algos are still on a steep growth curve, how has that been affected by the financial crisis? Has it made things easier or harder for the algos? And have they suffered less or more than human-driven trading firms? Vishala Sri-Pathma investigates. (This article has been re-edited since the print publication.)
In the past decade, derivatives exchanges across the world have recognised algorithmic trading as an important driver of growth, and have adapted accordingly.
Yet many believe that algorithmic trading is still only in its infancy in the futures and options market. The changes to come may be more far-reaching than those that have already happened.
The global head of algorithmic trading at a leading US bank believes this kind...