Hedge Funds To Boost Use Of Trading Algorithms For Stocks, Tabb Group Says

07/19/2010 03:20 am ET | Updated May 25, 2011
  • Bloomberg

Asset managers such as hedge funds will probably increase their use of computer programs known as algorithms to execute their stock trades in 2011, according to securities-industry research firm Tabb Group LLC.

The proportion of orders processed by algorithms will probably amount to 35 percent next year, up from 29 percent in 2010, according to a report from Tabb analyst Cheyenne Morgan and director of research Adam Sussman. Human traders at broker- dealers will execute 35 percent of orders in 2011, down from 39 percent this year, the report said.

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