Recent decisions by firms that use high-frequency trading strategies to move away from more established trading venues in favour or emerging markets continues a trend that has been developing since the financial crisis, finds Galen Stops.
In March, Getco, one of the world’s largest
automated trading firms, became the first Western trading firm
to gain approval to trade in India, the world’s
fastest growing derivatives market. The move came just months
after IMC closed its Hong Kong office as it seeks more
profitable pastures for its trading strategies.
The timing of IMC’s withdrawal from Hong Kong
raised eyebrows in some corners of the market. Hong Kong
Exchanges and Clearing is currently in the process of an
enormous tech upgrade, the Orion Project, which will result in
it housing some of the most advanced technology in the
However, despite the technology upgrade, HKEx is taking a
cautious approach on HFT. In an interview with FOW last year,
Charles Li, the chief executive of HKEx, said in his typical
allegorical manner that the exchange "did not want Ferraris to
run wild on the highway".
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