Futures Algos: A Class of Their Own

The agency futures business typically has been supported by the more profitable equities and fixed income businesses, often forced to fight for tech resources and to creatively adopt solutions that didn’t exactly fit. This was especially true for trading algorithms, developed predominately for equity trading but re-patterned for the global futures markets. This, however, is changing. Independent third-party technology firms are developing specialized futures algos that are breaking the dated equity mold by providing solutions specifically geared to a market that dwarfs equities. In this exclusive TABB Group Market Note, Larry Tabb examines the evolution of futures algos.