For member's interest, here are the survey results, precis and...

For member's interest, here are the survey results, precis and link to full results:

PPR survey finds overwhelming negative sentiment toward High Frequency and Algorithmic Trading


The rise in algorithmic and high frequency trading (HFT) on the Australian Securities Exchange (ASX) and global stock exchanges has raised considerable alarm among investors, analysts and other market participants.


Highlights:

Comprehensive survey conducted into High Frequency Trading and algorithmic trading on the ASX,

Surveyed groups included retail investors, private client advisor/brokers, fund managers, analysts, institutional and listed company representatives;

Key findings:

96.6% of respondents believe high frequency and algorithmic trading is having negative impact on ASX;

89.3% of respondents believe high frequency and algorithmic trading impacts the ability of the ASX to conduct a fair and transparent market;

90.3% believe the greatest impact of high frequency and algorithmic trading is a decrease in fairness and market transparency on the ASX;

78.1% of respondents say the algorithmic and high frequency trading makes them reluctant to trade on the ASX (this increases to 85% among retail investors);

Respondents varied on preferred methods of controlling the impact of high frequency and algorithmic trading on the ASX; and

Majority of respondents believe ASIC has inadequate regulatory and supervisory powers and tools.


To download a full copy of the results of the PPR Market Survey “Algorithm and high frequency trading on the ASX: what is your view?” please go to: www.openbriefing.com.au

or click here.