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Algorithmic and high frequency trading in Asia-Pacific, now and the future

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  • Zhou, Hao
  • Kalev, Petko S.

Abstract

The Asia-Pacific securities markets are among the fastest growing markets in the world and account for more than one third of the global market capitalization. Drawing from the literature and recent technological developments worldwide, we discuss the current state and the future developments of computerized trading in a set of the largest Asia-Pacific economies, which constitute approximately 85% of the region's securities market. We first identify the drivers and deterrents of computerized trading based on the academic literature and regulatory investigations. We then assess the current viability and the future growth of computerized trading in the Asia-Pacific economies. Finally, we survey the empirical findings on algorithmic and high frequency trading in the Asia-Pacific region in comparison with the global empirical and theoretical literature.

Suggested Citation

  • Zhou, Hao & Kalev, Petko S., 2019. "Algorithmic and high frequency trading in Asia-Pacific, now and the future," Pacific-Basin Finance Journal, Elsevier, vol. 53(C), pages 186-207.
    • Handle: RePEc:eee:pacfin:v:53:y:2019:i:c:p:186-207
    DOI: 10.1016/j.pacfin.2018.10.006
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    Cited by:

    1. Fan Fang & Carmine Ventre & Michail Basios & Hoiliong Kong & Leslie Kanthan & Lingbo Li & David Martinez-Regoband & Fan Wu, 2020. "Cryptocurrency Trading: A Comprehensive Survey," Papers 2003.11352, arXiv.org, revised Apr 2020.
    2. Zhou, Hao & Kalev, Petko S. & Frino, Alex, 2020. "Algorithmic trading in turbulent markets," Pacific-Basin Finance Journal, Elsevier, vol. 62(C).

    More about this item

    Keywords

    Algorithmic trading; High frequency trading; Market quality; Asia-Pacific region; Transaction cost;

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G19 - Financial Economics - - General Financial Markets - - - Other

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