Who gains from algorithmic trading?

Investment banks need to think carefully about which institutions they market their services to.

The head of algorithmic trading at a leading investment bank recently expressed the following view: “If algorithmic trading is so fundamentally good because it gets such great results, then in any other industry there would have already been a massive swing towards it. The reason why it does not happen in investment banking is because customers just aren’t savvy enough. It is only the smarter customers, the more demanding ones, who are prepared to pay for it.

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