Algorithmic Trading in the Spotlight

The Burford Capital furore has put algorithmic trading in the spotlight, but does it have a part in to play in providing liquidity to stock markets?

Holly Black 14 August, 2019 | 2:55PM
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Algorithmic trading has become a hugely important tool to investment firms in recent years as time is one of the few advantages they can have over their rivals.

Historically, investors could gain an edge over the competition through contacts, meetings and researching less well-known companies. But in a fast-paced, internet-driven world, markets are said to have become more efficient – that is to say, that most information is now out in the public forum and it is difficult to gain an informational edge. How then, to beat your rivals to a trade?

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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