[ A L G O R I T H M I C
T R A D I N G
Figure 3: Average number of providers used by AUM
2.33
Not answered
2.13
Long-only 2019
Long-only 2018
Long-only 2017
2.87
1.77
Up to $0.25 billion
S U R V E Y ]
2.50
1.53
2.20
2.17
2.26
$.02 5- 0.5 billion
1.43
$0.5 - 1 billion
2.50
1.43
2.90
3.64
3.53
$1 - 10 billion
3.73
$10 - 50 billion
3.81
More than $50 billion
4.45
4.41
3.51
0.00
0. 50
year, due to the double volume caps
(DVCs) introduced for dark pool
trading in March last year; the data
suggests that slightly more respon-
dents are using algos for this reason
than last year, with a small increase
of 0.07 year-on-year.
The above scores suggest that
efficiency has become the key
watchword for buy-side users that
have now moved on from regula-
tory compliance as their primary
1.00
1.50
2.00
2.50
3.00
focus. Algo cost will always be an
important factor for end users, but
the improved perception of speed,
trader performance and price
improvement capabilities indicates
that survey respondents recog-
nise that algo providers are going
further in these areas to support
automated trading optimisation.
Shifting strategies
Long-only firms continue to adopt
3.50
4.26
4.0 0
4.50
5.00
and utilise algos for the same rea-
sons as they have done historically,
despite the change in the regulato-
ry landscape, according to Figure 2.
The importance of execution per-
formance consistency, improving
the performance of traders and the
ease of algo use were again some
of the most popular reasons among
respondents for the use of algos –
the ease of use factor in particular
continues to be more important for
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