In a new report by the research and advisory firm Aite Group, “Futures and Options on Futures Trading Platforms: Where Are They Now?”?it found that a rising confidence in the future and options market has led to growth in electronic trading.?
The report was complied by the firm from March – December 2012 via vendor briefings, in-person meetings, roduct demos and WebEx demos.?
The TRADE News reported the findings and included the study’s following statistics:
- Algorithmic execution strategies as a proportion of electronic trading grew to 66% in 2012, up from 2011’s 63%.
- Overall numbers for electronic trading of options and futures increased to 93% last year, up from 92% of all activity in 2011.
- By 2015, an estimated 97% of all listed futures and options will be traded electronically; this includes 80% that will utilize algorithmic strategies.
Howard Tai, Aite Group senior analyst and the report’s author said, “Ongoing, transparency-promoting global regulatory changes and the centralisation of clearing and trading for OTC derivatives instruments will force more electronic trading in the futures and options space.”
The report also made a few forecasts including constant growth for listed futures and options industry as new regulations–the Dodd-Frank Act and for Europe, markets infrastructure regulation–will push demand for swaps trading, increasing activity into futures and options.
This has led to the “futurisation” of swaps, with new futures products that mimic standardized OTC contracts from last October, reported The Trade, something Aite predicts will keep growth in futures and options going.