High-frequency trading seems to be in a lull at the moment. But volume is bound to pick up. And most think the secular trend toward more high-frequency trading remains intact.

We may see the growth rate over the next few years rise fastest in foreign markets. Certainly, various exchanges in Asia, notably in Singapore, are investing heavily in their infrastructure to be able to accommodate more high-speed trading and hopefully not lose market share. In Europe, this is going on as well. For example, the London Stock Exchange, which has seen its market share in British equity trading eroded by competitors, has launched a speedy sponsored access service aimed at providing high frequency traders with direct access to its order books, reports Reuters.

The LSE said the service offers high-frequency traders unprecedented access to its main British order book and to the Turquoise system. Other exchanges are taking the opportunity to invest in their systems and one could argue that one benefit of consolidation for some exchanges is that it will help them better compete in the on-going technology arms race. Which has gone global in a big way.

For more:
- here's a Reuters article
- for a look at the future of high frequency trading, check out our free upcoming webinar

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