Statistics show that programmed trading accounts for more than 30% of the New York Stock Exchange’s trading volume. Short-term trading using computer programs and some quantitative indicators has become popular abroad. For the Chinese market, due to the leverage and low transaction costs of stock index futures, it is feasible to use the T+0 trading mechanism of stock index futures for timing trend investment. Technical indicators will serve as a timing tool in future trend trading. will also play an important role. However, because the domestic securities market only has a history of 20 years, there is still a big gap in market maturity compared to Europe, the United States and other developed regions in Asia-Pacific, resulting in the performance of many programmed trading strategies in the domestic market being greatly restricted.
First of all, domestic trading venues are relatively single, and stocks are only traded on exchanges. The situation abroad is that a large amount of liquidity exists outside the exchange. Even the same stock will be traded on multiple exchanges. Currently, only about 25% of the trading volume of NYSE stocks is executed through the NYSE. Many foreign execution algorithms are tailored for this condition, such as various intelligent routing algorithms, but these algorithms are not of much use in China. Secondly, the T+1 delivery system in the domestic securities market makes it impossible to implement a large number of intraday trading strategies, and high-frequency trading strategies are even more out of the question. In addition, the stock market lacks a market maker system, the products available for trading are simple, and the trading instructions are not complete, etc., which are not conducive to the development of programmed trading strategies.
Beijing Liangbang Information Technology Co., Ltd. is a company planning to be listed on the New OTC Market that focuses on financial big data and scientific cloud computing.
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Despite this, the development prospects of programmatic trading in China are still good. The launch of the securities lending and short selling mechanism has greatly increased the scope of programmatic strategies. In addition, since the CSI 300 stock index futures were officially launched in April 2010, a large number of programmatic arbitrage strategies have been launched and created an astonishing trading volume. The main domestic futures exchanges include Dalian Commodity Exchange, Zhengzhou Commodity Exchange, Shanghai Futures Exchange and China Financial Futures Exchange. CFFEX trades financial futures, including already listed stock index futures and treasury bond futures, while the other three exchanges trade commodity futures. Although the CFFEX only has two varieties: stock index futures and treasury bond futures, the trading volume has accounted for half of all futures products, and these two financial futures products are very suitable for using a variety of programming including arbitrage, trend and high frequency. Strategies for trading. Even more gratifying is that on April 16, 2015, China Financial Futures Exchange will launch two new stock index futures trading varieties, SSE 50 and CSI 500. This is a good opportunity for various programmed trading strategies to discuss heroes.