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Global Algorithmic Trading Markets, 2020-2025 - Growing Demand for Market Surveillance Augmented by Reduced Transaction Costs - ResearchAndMarkets.com

·4-min read

The "Algorithmic Trading Market - Growth, Trends, and Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.

The algorithmic trading market is expected to register a CAGR of 11.23% in the forecast period from 2020 to 2025.

Traditionally, traders keep track of their trading activities and investment portfolio by using market surveillance technology. Applications, such as algorithmic trading, have built-in intelligence to search for the opportunities that exist in the market, as per the yield and other criteria defined by the user.

Factors, such as favorable government regulations, increasing demand for fast, reliable, and effective order execution, growing demand for market surveillance, and reducing transaction costs, are expected to spearhead the need for the algorithmic trading market. Institutional investors and big brokerage houses use algorithmic trading to cut down on costs associated with bulk trading.

Key Market Trends

Institutional Investors are Expected to Hold Major Share

Institutional investors are banks, credit unions, insurance companies, hedge funds, investment advisors, and mutual funds companies, which pool in their money to purchase securities, real estate, or any other kind of investment assets. Institutional investors, daily, use multiple computer-driven algorithmic strategies in the volatile trading markets, which succumb to the trade influence and the market makers. These techniques enable the traders to cut down the costs of trades and improve their profitability.

North America Expected to Dominate the Market

North America is expected to hold the largest market size in the global algorithmic trading market in adopting and developing algorithmic trading. The rising investments in trading technologies such as blockchain, increasing presence of algorithmic trading vendors, and growing government support for global trading are the major factors that contribute to the market growth during the forecast period. Also, due to the substantial technological advancements and considerable application of algorithm trading in various applications such as banks and financial institutions across the region is expected to stimulate market growth.

Competitive Landscape

The global algorithmic trading market is moderately fragmented due to the presence of various market players globally, including Virtu Financial, Inc., Algo Trader AG, MetaQuotes Software Corp., Refinitiv Ltd, etc. Key players focus on developing new solutions and creating effective marketing strategies for market surveillance to maintain and increase their market share.

February 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, Borse Frankfurt and BME, among others.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS

4.1 Market Overview

4.2 Industry Attractiveness - Porter's Five Force Analysis

4.2.1 Bargaining Power of Suppliers

4.2.2 Bargaining Power of Buyers/Consumers

4.2.3 Threat of New Entrants

4.2.4 Threat of Substitute Products

4.2.5 Intensity of Competitive Rivalry

4.3 Technology Snapshot

4.3.1 Algorithmic Trading Strategies

4.3.1.1 Momentum Trading

4.3.1.2 Arbitrage Trading

4.3.1.3 Trend Following

4.3.1.4 Execution-Based Strategies

4.3.1.5 Sentiment Analysis

4.3.1.6 Index-Fund Rebalancing

4.3.1.7 Mathematical Model-Based Strategies

4.3.1.8 Other Algorithmic Trading Strategies

5 MARKET DYNAMICS

5.1 Market Drivers

5.1.1 Rising Demand for Fast, Reliable, and Effective Order Execution

5.1.2 Growing Demand for Market Surveillance Augmented by Reduced Transaction Costs

5.2 Market Restraints

5.2.1 Instant Loss of Liquidity

6 MARKET SEGMENTATION

6.1 By Types of Traders

6.1.1 Institutional Investors

6.1.2 Retail Investors

6.1.3 Long-term Traders

6.1.4 Short-term Traders

6.2 By Component

6.2.1 Solutions

6.2.1.1 Platforms

6.2.1.2 Software Tools

6.2.2 Services

6.3 By Deployment

6.3.1 On-Cloud

6.3.2 On-Premise

6.4 By Organization Size

6.4.1 Small and Medium Enterprises

6.4.2 Large Enterprises

6.5 Geography

7 COMPETITIVE LANDSCAPE

7.1 Company Profiles

7.1.1 Jump Trading LLC

7.1.2 Refinitiv Ltd

7.1.3 63 Moons Technologies Limited

7.1.4 Virtu Financial, Inc.

7.1.5 MetaQuotes Software Corp.

7.1.6 Symphony Fintech Solutions Pvt Ltd

7.1.7 Info Reach, Inc.

7.1.8 ARGO SE

7.1.9 Algo Trader AG

7.1.10 Kuberre Systems, Inc.

8 INVESTMENT ANALYSIS

9 FUTURE OF THE MARKET

For more information about this report visit https://www.researchandmarkets.com/r/wt3dny

View source version on businesswire.com: https://www.businesswire.com/news/home/20201027005683/en/

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