Algorithm Trading Market Scope
The major growth drivers of the market include the rising demand for fast, reliable, and effective order execution, reducing transactional costs, increasing government regulations, and growing demand for market surveillance. Moreover, increasing disposable income has led to an increased trading activity which makes it an important factor driving the growth of the algorithmic trading market. Most of the vendors in the algorithmic trading market offer cloud-based trading solutions to gain maximum profits and effectively automate the trading process. The adoption of cloud-based algorithmic trading solutions is expected to grow, mainly due to their benefits such as easy trade data maintenance, cost-effectiveness, scalability, and effective management.
The companies are operating in this market are exploring new geographical regions by accepting mergers & acquisitions, expansions, investments, new services launch and partnerships as their advanced business strategies. The major key players are enhancing in the new areas through expansions and acquisitions across the globe to become more competitive advantage through combined interactions. Research Analyst at AMA estimates that United States Players will contribute to the maximum growth of Global Algorithm Trading market throughout the predicted period.
Thomson Reuters (United States), 63 moons (India), Virtu Financial (United States), Software AG (Germany), MetaQuotes Software (Cyprus), Symphony Fintech (India), InfoReach (United States), Argo SE (United States), Kuberre Systems (United States), Tata Consulting Services (India), QuantCore Capital Management (China), iRageCapital (India), Automated Trading SoftTech (India), Tethys (United States) and Trading Technologies (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research are uTrade (India), Vela (United States) and AlgoTrader (Switzerland).
Segmentation Overview
The study have segmented the market of Global Algorithm Trading market by Type (Forex Algorithm Trading, Stock Algorithm Trading, Fund Algorithm Trading, Bond Algorithm Trading, Cryptographic Algorithm Trading and Other Algorithmic Trading), by Application (Short Term Trader, Long Term Trader, Retail Investors and Institutional Investors) and Region with country level break-up.
On the basis of geography, the market of Algorithm Trading has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico).
Influencing Trend:
Growing Adoption of Cloud-Based Solutions
Market Growth Drivers:
Growing Demand for AI-based Services in the Financial Sector, Increasing Government Regulations and Growing Demand for Market Surveillance and Rising Adoption of Non-equity Trading Algorithms by Institutional Asset Managers
Challenges:
Lack of Accuracy and Consistency in Algorithms
Restraints:
Lack of Monitoring and Insufficient Risk Valuation Capabilities
Opportunities:
Algorithmic Trading to Have No Impact on Human Emotions and Emergence of Ai and Algorithms in the Financial Services Sector
Market Leaders and their Expansionary Development Strategies
In Mar 2019, Virtu Financial acquired Investment Technology Group, a global financial technology company that helps top brokers and asset managers improve returns for investors across the globe. The acquisition would implement a Client Information Security Program (CISP) for Virtu Financial’s broker-neutral client offerings.
In Feb 2020, The listed German Fintech firm, NAGA, announced that it had enhanced its overall trading experience with the integration of the MetaTrader 5 platform. The brand has completely expanded its multi-asset offering to provide its growing network of clients with direct market access to stocks listed on nine global exchanges, including NASDAQ, NYSE, London Stock Exchange, HKE, Börse Frankfurt and BME, among others., and I
Key Target Audience
Venture Capitalists and Private Equity Firms, New Entrants/Investors, Analysts and Strategic Business Planners, Algorithm Trading Providers, Government Regulatory and Research Organizations and End-Use Industries
About Approach
The research aims to propose a patent-based approach in searching for potential technology partners as a supporting tool for enabling open innovation. The study also proposes a systematic searching process of technology partners as a
preliminary step to select the emerging and key players that are involved in implementing market estimations. While patent analysis is employed to overcome the aforementioned data- and process-related limitations, as expenses occurred in that technology allows us to estimate the market size by evolving segments as target market from the total available market.