High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
High-frequency trading – a discussion of relevant issues - Xetra
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<strong>High</strong>-<strong>frequency</strong> <strong>trading</strong> <strong>–</strong> a <strong>discussion</strong> <strong>of</strong> <strong>relevant</strong> <strong>issues</strong> May 2013Explicit transaction costs decreased substantially for Europeaninstitutional investors through technical advancement ….• The share <strong>of</strong> high touch order execution decreased drastically in the last few years through theincrease in the availability technology. At the same time, the cost <strong>of</strong> high touch executions wascut in half.• No touch (DMA) occurs at very low cost and accounts now for approximately 80% <strong>of</strong> totalexecution.Method <strong>of</strong> execution20002005 2011% trades fee (bps) % trades fee (bps) % trades fee (bps)<strong>High</strong> touch touch 100% 25-40 70% 15-20 20% 10-15No No touch (DMA) (DMA) N.A. 30% 7-8 80% 1-3Source: IMC estimation13
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