In Algos we trust?

The buy side's emergent use of algorithmic execution for derivatives trades is just the latest instance of the technique's increasing pervasiveness. But as competition grows more intense, so does concern over improper use of algorithms. By Navroz Patel

pg39-wald-gif

Algorithmic trading has become a common-place feature of buy-side equity order execution. The technique, however, which involves the use of complex models to optimise the size and timing of orders, so that large trades can be executed cheaply with minimal market impact, is mutating. In a world of wafer-thin equity commissions, algorithmic execution is becoming an increasingly crowded space on the sell side, with providers - be they broker-dealers or agency-only firms - involved in a race to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here