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Survey of North American Asset Managers: Algorithmic and DMA Trading Use Growing Gradually
28 December 2006
 
David Schehr  

Gartner's survey of North American asset managers indicates slow, steady growth in the use of algorithmic and direct market access trading. Although roughly half of all those surveyed are employing these tools, increased adoption and volume growth will be gradual.





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Table of Contents


    
 Analysis

1.0
    
 Survey Background
2.0
    
 Algorithmic Trading Enjoys Solid But Limited Use by Asset Managers

2.1
    
 Algorithmic Trading Volumes Will Gradually Increase
2.2
    
 Algorithmic Trading Still Predominantly for Execution Efficiency
3.0
    
 DMA Penetration Patterns Are Similar to Algorithmic Trading

3.1
    
 Trading Firms Use DMA Sparingly
4.0
    
 Use of Algorithmic and DMA Trading Don't Always Go Hand in Hand
5.0
    
 Conclusions
6.0
    
 Recommendations

    
 Recommended Reading


List of Tables


Table 1.  
 Use of Algorithmic Trading by Firm Type
 

Table 2.  
 Use of Algorithmic Trading by Firm Size (AUM)
 

Table 3.  
 Use of DMA Trading by Firm Type
 

Table 4.  
 Use of DMA Trading by Firm Size (AUM)
 

List of Figures


Figure 1. 
 Distribution of Asset Manager Survey Respondents
 

Figure 2. 
 Current and Planned Use of Algorithmic Trading
 

Figure 3. 
 Volume Trends for Algorithmic Trading, 2005 and 2007
 

Figure 4. 
 Main Purpose for Algorithmic Trading
 

Figure 5. 
 Current Use of DMA Trading
 

Figure 6. 
 Volume Trends for DMA Trading, 2005 and 2007
 

Figure 7. 
 Overlap of Algorithmic and DMA Trading Use
 



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Resource Id: 499663