Innovative platforms of algorithmic trading to help traders and investors make better decisions

19 Sep
2021

 
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The tech-savvy generation has preferred trading through different platforms that make it simpler for them to trade and avail profits. Moreover, availing insights and making trades will improve profitability. These tech-driven investors and traders will be benefitted immensely with the launch of new platforms that have been developed with the help of smart algorithms. With ever-evolving investment scenario across stock exchanges in different countries, it is essential to gain insights on the changing dynamics and strategize accordingly. The demand for algorithmic trading would increase in the coming years as the technology adoption among traders, investors, and millennial population rise. In addition, there has been increased demand for smart algorithms in financial institutions and risk valuation capabilities. Newly-launched platforms by fintech players aim at catering to these demands. According to the report published by Allied Market Research, the global algorithmic trading market is projected to reach $31.49 billion by 2028. Following are some of the activities taking place across the world.

The launch of innovative solutions has been one of the leading trends in the tech-driven trading. Cowen launched an algorithmic trading solution, Inaccessible Liquidity Adjustment. This solution is aimed at addressing various issues such as fundamental shifts in the U.S. market structure and assisting traders in navigating the investment scene seamlessly. The ever-changing and ever-evolving investment landscape can be better understood and changes in investments can be made with assistance by the new solution. This innovative solution is aimed at outlining the changing market dynamics regarding increased volume of retail trading that impact the single-stock execution. This would help investors and traders in making smarter decisions than before.

Its Inaccessible Liquidity Adjustment solution can adjust dynamically as per the changing market condition and assist clients in avoiding purchase of inaccessible volume in stocks. As the rates of retail trading can be higher than the usual rates in these cases, clients can save costs by avoiding the purchase or pursuit of such stocks. The solution will carry out the calculation of the percentage of inaccessible liquidity in the U.S. market with the help of data from the FINRA of three months and off-exchange. This would give heads up to the clients and strategize trading accordingly.

Fintech players have been offering innovative platforms and these platforms can offer insights that are not restricted to the U.S. market only. Citi Bank launched an innovative algorithmic trading platform for major exchanges from the U.S., Asia-Pacific, and Europe. This platform contains the benchmark algorithms such as volume-weighted average price (VWAP), time-weighted average price (TWAP), and Close. Its flagship algorithm, known as Arrival, is estimated to reduce slippage through lowering the cost trade-off between price fluctuations and market volatility in real time. In addition, the platform combines various parameters of micro-market and micro-structure environments into one access point. The company highlighted that its clients do not need to enter various parameters for carrying out an order. They need to focus on investment and trading objectives, while the platform deploys the smart algorithms and customizations to help clients.

 
Koyel Ghosh

Koyel Ghosh

Author’s Bio- Koyel Ghosh is a blogger with a strong passion and enjoys writing in miscellaneous domains, as she believes it lets her explore a wide variety of niches. She has an innate interest in creativity and enjoys experimenting with different writing styles. A writer who never stops imagining, she has been serving the corporate industry for the last five years.

 
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