The Gateway to Algorithmic and Automated Trading

Surveys reinforce growing relevance of algorithms

Published in Automated Trader Magazine Issue 28 Q1 2013

Wolfgang Eholzer, Head of Trading Systems Design, Eurex Automated Trader's annual survey provides an informative view on how market participants are using technology. In late 2012, Eurex Exchange conducted its own analysis of the impact of high frequ...

Wolfgang Eholzer, Head of Trading Systems Design, Eurex

Automated Trader's annual survey provides an informative view on how market participants are using technology. In late 2012, Eurex Exchange conducted its own analysis of the impact of high frequency trading on market prices. The results of both surveys reinforce the growing relevance of algorithms; a more in-depth view of Eurex Exchange's findings will be provided in the Q2 edition of this magazine and at several US events.

Automated Trader survey results underscore that market participants are looking towards further automation to help them tackle pressing business challenges. Sell and buy side firms plan to increase their automation to help discover new sources of alpha and streamline processes and costs. For exchanges that offer straight-through-processing, the results mean that their models will add value for an increasing number of market participants because they enhance efficiency, reduce error and drive down risk management costs.

About 20% of buy and sell side respondents plan to increase use of algorithms to improve risk management. Eurex Group stands ready to help firms with a wide range of pre- and post trade risk and technology monitoring tools, as well as robust central clearing via Eurex Clearing.

Technology and low-cost access will become even more crucial. Eurex Exchange's Technology Roadmap is one example in which an exchange has laid out a technology approach to inform market participants and gather important market feedback. This iterative process resulted in the launch of Eurex Exchange's new trading architecture.

Further details on the survey findings can be found here

For more information on Eurex Exchange's offerings for HFT, please contact: Wolfgang Eholzer, Head of Trading Systems Design. Wolfgang.Eholzer@eurexchange.com,
T +49 69 211 1 5513. For more information on the US events, please contact: Vassilis Vergotis, Executive Vice President and Head of Eurex Offices in the Americas. Vassilis.Vergotis@eurexchange.com, T+ 1 (312) 544 - 1058.