Boston, MA, April 13, 2005
– According to a new report from Aite Group, LLC, Agency brokers present the most formidable
threat to bulge bracket firms in the algorithmic trading service market. Most large agency brokers, in particular,
have the capability to match the full suite of execution services typically provided by bulge bracket firms in addition
to other bundled services, such as research and securities processing. For these large agency brokers, algorithmic trading
is yet another tool in their overall execution services offering. In recent years, numerous small, yet technology-driven
agency brokers have also emerged in the hope of capturing market share. Many of these agency brokers are run by ex-ITG staff,
no doubt leveraging over a decade of experience they have accumulated in the marketplace.
The report provides detailed profiles of eight leading agency brokers in electronic trading: BNY Brokerage,
EdgeTrade, FutureTrade, ITG, Lime Brokerage, Miletus Trading, NeoNet, and UNX.
According to Sang
Lee, Managing Partner of Aite Group and the author of the report,
"Agency brokers offer a viable alternative to buy-side firms
looking for robust un-conflicted algorithmic trading services."
Lee goes onto add, "Agency brokers with scale and high-level of
industry reputation should be well positioned to capture additional
market share in coming years."
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