June 11, 2010

Thomson Reuters released a poll of 100 New York based buy-and sell-side firms offering their opinions on high frequency trading, in which 75 percent of respondents define HFT as sub-second trading.

This is a significant increase above the 61 percent of respondents who defined high frequency as sub-second in a poll conducted in 2009.

Other key findings include:

• More than half the respondents felt the main impact of the growth in HFT is increased market liquidity, which is a 15 percent increase from last year’s response.

• When asked which markets offer the biggest potential for high frequency trading, 54 percent of respondents point to the United States, while 24 percent believed emerging markets provided the biggest potential.

• Thirty percent felt that regulation in HFT would have no substantial change, while 21 percent believe it would significantly decrease liquidity.

• Forty-percent maintained the lack of knowledge and skills were challenges in the application of HFT across markets.

• Fifty percent of the survey participants stated that outsourcing parts of the infrastructure would allow them to higher-value added activities.

According to Thomson Reuters, it’s clear from the poll that the trend continues for lower latency, automated trading which will drive the need for hosted and managed solutions. By outsourcing parts of, or all of their infrastructure, customers can benefit from a faster time to market and lower cost of ownership, said the company.

ABOUT THE AUTHOR
Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...