As reported by marketwatch.com’s Tim Cave, High-frequency traders are continuing to build their presence on European stock markets with new data from Nasdaq OMX revealing that the firms doubled their trading activity on the operator’s Nordic markets during 2011.
The combined value of equities traded by high-frequency trading firms on Nasdaq OMX’s Nordic markets (Sweden, Denmark, Finland and Iceland) increased by 97% to EUR170 billion last year.
The firms accounted for around 12% of trading on the markets during the year, up from 6.5% in 2010. Overall market activity increased by 5% to EUR1.4 trillion.
Citadel Securities, the marketmaking division of the Chicago-based hedge fund, was the biggest high-frequency trading firm on the markets for a second successive year – trading equities worth EUR38 billion. It was the 12th-largest participant overall. Snapping at its heels was Spire Europe, a fast-growing spinout of U.S. hedge fund Tower Research Capital, as well as the European arm of the Chicago-based powerhouse, Getco. Both traded equities worth more than EUR30 billion on Nasdaq OMX’s Nordic markets last year.