The Future of Computer Trading in Financial Markets
Advances in technology continue to transform how our financial markets operate. The volume of financial products traded through computer automated trading taking place at high speed and with little human involvement has increased dramatically in the past few years.
For example, today, over one third of United Kingdom equity trading volume is generated through high frequency automated computer trading while in the US this figure is closer to three-quarters.
A new two-year Foresight study The Future of Computer Trading in Financial Markets - An International Perspective, sheds new light on technological advances which have transformed market structures in recent years.
The future of computer trading in financial markets: an international perspective. The final report (PDF, 3.3 Mb)
The future of computer trading in financial markets: an international perspective. Executive summary (PDF, 522 Kb)
Die Zukunft des computergestützten Handels an den Finanzmärkten: ein internationaler Ausblick. Kurzfassung. (German translation of executive summary) (PDF, 824 Kb)
The independent and international study has involved 150 leading experts from more 20 countries to provide the best possible analysis on computer trading to date.
Sponsored by Her Majesty's Treasury, the project was led by the Government Office for Science under the direction of the Government's Chief Scientific Adviser, Professor Sir John Beddington. It has involved leading experts in the field and explores how computer generated trading in financial markets will evolve over the next 10 years.
It assembles and analyses evidence on the effect of HFT on financial markets looking out to 2022.
A High Level Stakeholder Group, comprised of senior individuals from relevant institutions, provided strategic oversight for the project and advised on the key issues to be addressed. It was chaired by the Financial Secretary to the Treasury, Greg Clark MP.
The aim of this project is to make a significant contribution to the challenges computer-based trading brings in the coming years and capitalise on the opportunities it has to offer.