[ A L G O R I T H M I C
T R A D I N G
Figure 6: Types of algorithms used (% of responses)
S U R V E Y ]
Long only 2018
Long only 2017
Long only 2016
59.55
62.3
59.3
% Volume (participation)
54.27
Dark liquidity seeking
72.08
81.9
14.43
11.87
11.1
Implementation shortfall (basket)
35.98
Implementation shortfall (single stock)
Other
48.69
58.1
6.3
TWAP
26
12.7
28.46
VWAP
55.69
57.07
43.7
0
and why, particularly when it
comes to best execution, and the
FCA has been very clear that this is
one area that is at the top of their
agenda going forward. For their
part, brokers and algo providers
have stepped up to support their
clients over the course of the last
year, both for their own sakes and
the wider industry.
The popularity of automated
trading is showing no signs of
slowing down and even though
the technology continues to grow
10
20
30
40
50
60
70
80
90
even more complex under the hood, traders are clearly
becoming much more comfortable with the systems
which allow them to focus their attention elsewhere
while still fulfilling their responsibilities. How this
will develop as the new regulatory landscape will be
fascinating to watch.
The TRADE would like to thank all of the buy- and sell-side firms that
took part in this year’s survey. As always, we encourage as many firms
to take part as possible and to get their clients involved. In the Summer
2018 edition of The TRADE we will publish the second part of this year’s
survey, which will evaluate the responses from hedge fund respondents.
Issue 55 // TheTradeNews.com // 81