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White paper: Understanding the impact of electronic trading on financial markets

We look at the evolution of financial markets from trading floors to electronic systems and its impact.

Johannesburg, 18 May 2022
Read time 1min 10sec

Decades ago, the stock market was a room filled with people yelling buy and sell orders at each other.

However, today the room is still there, but most of the people have been replaced by computers. These computers connect to traders who could be anywhere, even in the comfort of their homes.

Having computers replace the humans that once roamed the exchange floor means higher efficiency, as the computers have trading programs installed in them based on algorithms. These computers will not get tired, go on holidays, and can think for themselves without any emotion.

Technology has transformed electronic trading of securities in areas like execution management where the FIX protocol has standardised exchange of information and order management where electronic communication networks can now match sell and buy side together and reduce the spread involved.

Saurav Sharma of Forex Beginner South Africa discusses the advancements in execution and order management in electronic trading in this white paper.

You will know about new technologies and buzzwords like APIs, FIX Protocols, High Frequency Trading, ECN. You might have heard about these before on financial news and on the internet, here we will explain these concepts in detail.

Please download the below PDF to learn more.

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