Algorithmic trading in energy

Algorithmic trading has made slow progress in energy markets. Ned Molloy looks at the reasons for the limited uptake and at the market’s prospects

The turtle and the hare

Most buying and selling of shares is not done by humans any more. Algorithms, designed to sift through vast amounts of market data and detect subtle patterns, don't just suggest appropriate trades to their owner, but can execute trades themselves within milliseconds of finding an opportunity.

They are also used to slice up large trades into many smaller ones to conceal the trade from the rest of the market, a technique known as iceberging. But while such strategies are well established in

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