September 13, 2019
As per industry reports, the global algorithmic trading market size is expected to grow with a CAGR of 11.1 %, from USD 11.1 billion in 2019 to USD 18.8 billion by 2024. This herculean projection can be attributed to various factors like demand for fast and effective order execution, lesser cost of transactions, increasing government regulations, and growing demand for market surveillance.
Almost a decade ago, India also witnessed a huge shift towards algorithmic trading when the Securities & Exchange Board of India (SEBI) allowed stockbrokers to provide Direct Market Access (DMA) to their institutional clients. This can be considered as the arrival of algorithmic trading (AT) in India. Furthermore, since this was introduced during the global recession, the entire banking and the securities market was rallied by the introduction of DMA.
Furthermore, algorithmic trading is no longer solely the turf of institutional traders, brokers, and large fund houses. In fact, retail investors are now buying into the idea; quite a few discount brokerages and startups have already started offering them algorithmic trading plat ...