The New Arms Race

SPECIAL REPORT EDITOR’S LETTER

Considering all the time and effort being spent on hyping the benefits of algorithmic trading, one question emerges: Who will be the big winners? The buy side is going to have to see some immediate benefit of its adoption or the entire concept is dead in the water.

Right now, everyone seems to imply that the benefits will be in improved Alpha, or the extra price improvement firms will get on the trade. It might be in the short-term when not every firm is using algorithms to trade, but that’s

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