BRICs (Brazil,Russia,India,China) Catch High-Frequency Trading Habit

As reported by Robert Plummer from BBC news, ultra-fast trading has transformed global markets in recent years, but regulators have been accused of an ultra-slow response to changing times.

Thanks to complex computer software and algorithmic formulae, it is now possible for stocks, shares, currencies and commodities to change hands in fractions of a second, without the need for human intervention.

In the financial centres of Europe and the US, where the practice began, the people responsible for policing the markets are getting worried about their ability to cope.

But while they talk about how to curb it, trading based on algorithms is not going away. In fact, it is spreading faster than ever, as emerging markets catch on to its potential.

“The Bric (Brazil, Russia, India and China) countries are where it’s at right now,” says Dr John Bates, executive vice-president and chief technology officer of Progress Software, a company that has pioneered new techniques in what are known as quantitative trading programs.

“We’ve seen it grow very quickly in Brazil. It’s done what happened in London and New York much more quickly. Now we’re seeing the same trend in India and China and even, embryonically, in Russia.”

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One Response to BRICs (Brazil,Russia,India,China) Catch High-Frequency Trading Habit

  1. spverma says:

    In a separate article an analyst raised concern that due to slow adopt-ability of this new technology, it really gives more power and knowledge (mostly to top hedge funds and traders with deep pockets to gain at the expense of average traders not using this platform. I believe these concerns should be addressed before people in general would be more comfortable with this platform.

    Thanks

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