Electronic Trading

The recent crisis has reduced the market’s appetite for complex and leveraged financial products, and the focus has shifted substantially towards vanilla and flow products for which automation of the entire business is possible. The pushes for greater transparency and creation of CCPs to channel the bilateral flow business are two major vectors of change; together they are shifting the way financial markets will work in the future. 

The transition from voice trading of liquid high volume assets like equity and FX to electronic trading occurred some time ago. Now, many institutions face big challenges to move as much as possible of their business onto electronic trading platforms. Computer algorithms execute the orders and make substantive decisions without any human intervention. There is a growing need to develop better quantitative understanding of the impact this movement will have on the entire industry, as well as to better understand the nature of the interactions that occur between markets and “Algos”.

OMI expertise in this area comes from many directions. There is work on order books, on market design, and the development of tools to better describe the flow processes of these complex systems.

 
People

Meet the OMI members whose research relates to Electronic Trading.