Means of production: Making algorithmic trading part of the core business.
As the relentless march of market efficiency proceeds, the increasing range of highly liquid, electronically tradable instruments will lead to the commoditization of algorithmic trading (AT). The ability to execute simple arbitrage at machine, rather than human, timescales will not confer a sustainable competitive advantage. For all but the most committed players, this advantage has already been lost in the major equities markets. However, the ability to execute complex low latency trading strategies, and to take advantage of predictive computer models, will increasingly become a pre-requisite for serious market participants. In light of this, it is critical that firms develop both the technical and operational capabilities to integrate AT as a core capability, rather than a speculative initiative.
To read the article in full click here.