Algo firms target SEFs

摘要

Algorithmic trading firms are expanding to target swap execution facilities after rivals arbitraged away the most obvious opportunities in exchange-traded markets, analysts say. Amid declining liquidity in futures markets and a surge in algo trading that has pushed its market share in fixed income above 50%, high-speed traders, algo shops and electronic market-makers are seeking out less competitive alternative environments and SEFs may be just the ticket. "The key for algos to work efficiently is for a venue to offer good liquidity in a central limit order book protocol," said Christian Hauff, CEO and co-founder of algo trading specialist Quantitative Brokers. "As it stands today we have a very active eye on the swaps market and the venues that are building their CLOBs."