Global Algorithmic Trading Market Size study & Forecast, by Type (Stock Market, Foreign Exchange, Exchange-Traded Fund, Bonds, Cryptocurrencies, Others) by Deployment (Cloud, On-premise), by End-user (Short-term Traders, Long-term Traders, Retail Investors, Institutional Investors) and Regional Analysis, 2022-2029
Global Algorithmic Trading Market is valued at approximately USD 1.89 billion in 2021 and is anticipated to grow with a healthy growth rate of more than 7.2% over the forecast period 2022-2029. Algorithmic trading is a process of executing orders using automated, pre-programmed trading instructions that take time, price, and volume into consideration. This type of trading aims to increase efficiency by using computers' speed and computational power instead of human traders. The surging adoption of algorithmic trading in financial institutions, rising for fast, reliable, and effective order execution and reduced transaction costs, coupled with the growing investments in trading technologies are the primary factors that are fostering market growth across the globe.
In addition, the rise in government regulations is acting as a catalyzing factor for market growth.
For instance, MiFID II- a European Union framework to rule financial markets by the implementation of a comprehensive set of algorithmic and high-frequency trading regulations in 2021. Also, in September 2022, SEBI declared several guidelines for stock brokers to offer services relating to algorithmic trading to investors and prevent misspelling instances. Moreover, the rising emergence of AI and ML in financial services, as well as the surge in demand for cloud-based solutions are presenting various lucrative opportunities over the forecasting years. However, the lack of appropriate risk valuation capabilities and lack of accuracy and consistency in algorithms are challenging the market growth throughout the forecast period of 2022-2029.
The key regions considered for the Global Algorithmic Trading Market study include Asia Pacific, North America, Europe, Latin America, and the Rest of the World. North America dominated the market in terms of revenue, owing to the growing investments in trading technologies, as well as rising government support for global trade. Whereas, the Asia Pacific is also expected to grow with the highest CAGR during the forecast period, owing to factors such as the rising deployment of algo trading technology by trading companies, along with and increase in computerized trading in the market space.
Major market players included in this report are:Tradetron (U.S.)
Tickblaze LLC (U.S.)
Wyden (U.S.)
TradeStation (U.S.)
InfoReach, Inc. (U.S.)
Symphony (U.S.)
ALGOTRADERS (U.S.)
Argo Software Engineering (U.S.)
FXCM Group (U.S.)
Tata Consultancy Services Limited (U.S.)
Recent Developments in the Market:In October 2022, Scotiabank introduced an algorithmic trading platform in collaboration with BestEx Research for the Canadian stock market. This new service offers top-tier trading performance for customers while significantly reducing costs thanks to research-based logic.
In March 2022, Trading Technologies International, Inc.- a provider of trading software stated that it had acquired RCM-X, a provider of technology for algorithmic trading products. This acquisition of RCM-X provides best-in-class implementation tools.
Global Algorithmic Trading Market Report Scope:
Historical Data 2019-2020-2021
Base Year for Estimation 2021
Forecast period 2022-2029
Report Coverage Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Segments Covered Type, Deployment, End-user, Region
Regional Scope North America; Europe; Asia Pacific; Latin America; Rest of the World
The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.
The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players.
The detailed segments and sub-segment of the market are explained below:By Type:
Stock Market
Foreign Exchange
Exchange-Traded Fund
Bonds
Cryptocurrencies
Others
By Deployment:
Cloud
On-premise
By End-user:
Short-term Traders
Long-term Traders
Retail Investors
Institutional Investors
By Region:
North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
RoLA
Rest of the World
Companies MentionedTradetron (U.S.)
Tickblaze LLC (U.S.)
Wyden (U.S.)
TradeStation (U.S.)
InfoReach, Inc. (U.S.)
Symphony (U.S.)
ALGOTRADERS (U.S.)
Argo Software Engineering (U.S.)
FXCM Group (U.S.)
Tata Consultancy Services Limited (U.S.)
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