Algorithmic and high frequency trading are the big new meal ticket for European and US exchanges and brokers. But what about further afield? As Hugo Cox discovers, there is plenty of appetite for high speed trading in Asia and Brazil, from both the traders and the exchanges. All that needs to happen is for barriers to be cleared away.
The silent growth of algorithmic trading has been one of the most powerful trends in securities and derivatives markets in recent years. But while plenty of attention has been paid to this in North America and Europe, it is a lesser known phenomenon in the smaller markets of Asia and the emerging markets.
Algorithmic trading requires a combination of liquid markets, technical infrastructure and institutional support that are only patchily available in these regions. Yet exchanges and brokers in Asia and Latin America are eager to attract this kind of firm,...