Hedge fund trading volume rises as algorithms become more popular

Hedge fund trading activity in US equities is growing in contrast to trades carried out by proprietary trading desks, new research has shown.

Financial figures

A report on low-touch trends in US equity trading indicated that trading by hedge funds and long-only asset managers accounted for almost one-third of the average US daily share volume in the first quarter of 2010. This was an increase from 25% in December 2008.

Hedge funds carry out approximately twice as much trading activity as long-only asset managers, the TBB report, US Equity Trading 2010: Low-Touch Trends, showed.

The research indicated that traders are decreasing their reliance on sales

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