Thursday, January 29, 2009

Use of advanced trading techniques surges in Asia – Celent

Electronic trading volumes grew rapidly in Asia between 2004 and 2007, as more exchanges developed and enhanced the functionality of their trading platforms, according to a new report on buy-side execution of securities trades from research and advisory firm Celent.

Hong Kong saw particularly strong growth, with the value of securities trades executed electronically increasing at a compound annual rate of 71% from $403 billion in 2004 to $2 trillion in 2007. Over the same period, Australia’s electronic trading volume leapt 43% year-on-year from $393 billion to $1.1 trillion, and Japan’s rose 25% from $3.2 billion to $6.1 billion.

As well as technology investment by exchanges, Celent cites wider adoption of the FIX protocol, development of direct market access and algorithmic trading tools, and demand from non-domestic firms, as key factors in the overall increase in electronic trading volumes.

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