This article appeared in the May 2010 Listed @ ASX newsletter.

ASX review of algorithmic trading and market access arrangements in Australia

In February 2010, ASX completed a review of algorithmic trading and market access arrangements in Australia in light of sustained growth in algorithmic trading in international markets and on the Australian market in recent years.

The review was primarily aimed at determining the impact of algorithmic trading in Australia, assessing the future growth of algorithmic trading, and identifying ways to meet demand from customers for alternative access arrangements to ASX’s market without undermining market integrity. The paper was also released more widely to help develop a broader understanding of the issues raised by algorithmic trading both for today and in the future, as well as to begin to address a number of concerns from some listed issuers and retail investors about algorithmic trading.

The paper can be viewed on the ASX website (PDF 947KB).

Copyright 2010 ASX Limited ABN 98 008 624 691. All rights reserved 2010.

Information provided is for educational purposes and does not constitute financial product advice.  You should obtain independent advice from an Australian financial services licensee before making any financial decisions.  Although ASX Limited ABN 98 008 624 691 and its related bodies corporate (‘ASX’) has made every effort to ensure the accuracy of the information as at the date of publication, ASX does not give any warranty or representation as to the accuracy, reliability or completeness of the information.  To the extent permitted by law, ASX and its employees, officers and contractors shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided or omitted or from any one acting or refraining to act in reliance on this information. This document is not a substitute for the Operating Rules of the relevant ASX entity and in the case of any inconsistency, the Operating Rules prevail.