More than 100 buy-side traders have shared their views on algorithmic trading in Asia as part of the latest instalment of The TRADE’s longstanding Algorithmic Trading Survey, showing a marked increase in the take-up of electronic trading in the region.
Respondents to the survey have already provided 450 individual evaluations on algorithms used in the region – over four times the number of assessments garnered in last year’s survey, emphasising the growing sophistication of investment managers in Asia when it comes to electronic trading.
The survey lets traders assess algo providers on a broad range of criteria, including preferred strategies, the impact on algorithm use on cost, execution consistency, market impact and the level of customisation offered.
“The TRADE’s Algorithmic Trading Survey has become a key barometer of electronic trading trends in Asia and this year we’ve made a conscious effort to grow the number of buy-side traders polled so the results are representative of an even greater number of algo users in the region,” said Bruce Love, editor of The TRADE Asia. “It’s the perfect opportunity for traders to let providers know what they think of the algos on offer.”
Last year’s survey revealed greater comfort in the use of ‘smart’ algo strategies among buy-side traders in Asia, including a substantial increase in the deployment of participation and dark liquidity-seeking strategies.
Traders also indicated they would like to see brokers enhance customisation capabilities, further evidence that Asian traders are getting closer to their US and European counterparts when it comes to algo use.
“In these times of scarce liquidity, algo selection becomes crucial and more and more traders are turning to smarter electronic strategies to fill their orders,” said Love.
The full results of the survey will be revealed in Q3 edition of The TRADE Asia, published in October, with an awards ceremony to be held in Hong Kong on 29 November.
Take part in The TRADE Asia's Algorithmic Trading Survey 2012 to share your views.