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Algorithmic trading

Introducing algorithmic trading

Algorithmic trading pictogram

An algorithmic trading system makes it possible for persons managing their own assets or persons in the capacity of investment firms to determine or program specific rules for the complex identification of opportunities to enter or exit investment positions with a computer system used for determining the individual parameters of orders relating to financial instruments, as well as for the generation, timing, routing or execution of these orders.

Graph created by robot's hand

The rules for identifying investment opportunities or investment strategies may be determined using pre-defined tools based on, for example, technical analysis. These include, for instance, crossings of moving averages in combination with indicators from a technical analysis and with chart views. Nevertheless, investment strategies can also be defined using a more complex solution in which the strategy is programmed in the language of the given trading platform.

Algorithmic trading does not include any system that is only used for the purposes of routing orders to one or more trading venues, for the processing of orders involving no determination of any trading parameters, confirmation of orders or for the post-trade processing of executed transactions.

Contents

Documents of international standardization institutions

European Supervisory Authorities

International Financial Market Regulation Organizations