ALGORITHMIC TRADING MARKET ANALYSIS

Regional Analysis

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North America has established itself as the dominant region in the global algorithmic trading market with an estimated market share of 36.4% in 2024. Major financial centres in New York and Chicago have a strong presence of algorithmic trading firms. Leading stock exchanges in the region have also invested heavily in developing technical infrastructure to support high-frequency and automated trading.

The large scale and liquidity of markets in the U.S. attracts many institutional investors that seek to deploy algorithmic trading strategies. Stringent regulations have helped foster a flexible yet regulated environment for such automated trading activities. Prominent algorithmic trading firms in North America also aid the research and development of new trading algorithms. This enables the region to stay ahead of the curve in terms of algorithm innovation.

Asia Pacific has emerged as the fastest growing market for algorithmic trading. Countries like China and India have witnessed increase in algorithmic trading activities due to growing institutional investments and maturing financial markets in these nations. Economic development in Asia has increased households' investable surplus that is making its way to stock exchanges.

Moreover, local stock exchanges also encourage algorithmic trading. Regulators in major Asian economies have introduced rules that promote automated trading. This encourages global as well as local algorithmic trading firms to focus on opportunities in Asia. While liquidity and efficiency are still catching up with developed markets, imminent upgrades to trading infrastructure will attract more institutional algorithmic traders to the region.