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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Box-By-The-Riviera™ who wrote (311187)8/19/2005 7:02:36 PM
From: Pogeu Mahone  Read Replies (1) of 436258
 
In WSJ 8/17/05 pB3B "Wall Street Turns to
Algorithms For Faster Trades, Lower Costs":

...trading algorithms increase message traffic on
the exchanges as they adjust and readjust orders.
According to one measure provided by Nasdaq,
message traffic has doubled since about a year
ago and is up more than threefold since the
beginning of 2004, which the exchange said is a
sign of the increased use of algorithms.
Plus, trade sizes are getting smaller, which
is a mark of the trading algorithms. Average
execution size for algorithmically placed
trades at Banc of America is down to 180
shares...That is from orders of several
thousand shares...the drop in trade sizes is
both a reason for the increased use of
algorithms, as well as a result of it. "The
decreasing trade size was primarily kicked off
by decimalization and algorithms evolved to
fill the need for trading in smaller sizes."
...
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