Latest News- Algorithmic Trading Market: Solutions is expected to lead the Component segment during 2025-2029

The Algorithmic Trading Market is being driven by High demand for market surveillance

The Algorithmic Trading Market is expected to grow at a CAGR of 15.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 18737.5 million. The integration of advanced electronic trading technologies, including liquidity aggregation and algorithmic trading, has significantly benefited both vendors and clients in the foreign exchange market. This innovation has facilitated easier access to a wider pool of market participants, enabling risk sharing and resulting in reduced trading costs and expedited execution times. In July 2024, BNP Paribas SA bolstered its currency trading operations by implementing sophisticated algorithms, such as Viper, Iguana, and Chameleon, as part of its Rex trading system. These tools have enhanced operational efficiency for hedge funds and corporate treasurers, solidifying BNP Paribas' position as a leading player in the USD7 trillion foreign exchange market. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on segments_for_ai.nslist

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• High demand for market surveillance
• Rise in integration of financial markets
• Growing opportunities and demand in APAC

However, the market also witnesses some limitations, which are as follows:

• Wider bid-ask spread in APAC
• Lack of awareness
• Limitations associated with algorithmic trading

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Market Scope in Algorithmic Trading Market Research Report

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Research Analysis Overview

Algorithmic trading, also known as Algo trading, involves the use of computer programs and mathematical algorithms to execute trades in financial markets based on predefined rules. This automated approach to trading is employed by hedge funds, institutional investors, pension funds, mutual funds, and others in the stock, bond, currency, commodity, cryptocurrency, and other markets. Black box trading, which utilizes artificial intelligence (AI) and financial service algorithms, is a subset of algorithmic trading. Automation reduces human error and offers improved risk management, but market volatility and price fluctuations can pose challenges. Cloud-based solutions enable the deployment of these complex systems.

Market Research Overview

Algorithmic trading, also known as Algo trading or black box trading, involves the use of computer programs and mathematical algorithms to execute trades in financial markets based on predefined rules. This specialized application of IT software is a significant component of the global application software market. Hedge funds and other financial institutions are major consumers of algorithmic trading solutions. According to market research firm Technavio, the global application software market encompasses companies that develop and produce software for various industries and markets, including algorithmic trading. The market size is determined by the combined revenue generated by these companies, including those offering cloud-based algorithmic trading solutions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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Website: www.technavio.com/