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Industry study 21 of 24 · Trading and Options Research Companion

Technology, Data, Algorithms and AI in Trading

~5,000 words

Technology sits in the execution factor of the edge equation, and for some firms it is the edge itself. It can also zero the survival factor in minutes. Some anchors:

What the study covers

  1. 1Overview: technology as edge, cost and risk
  2. 2Data: what traders use and how it misleads
  3. 3Execution algorithms and smart order routing
  4. 4The latency race
  5. 5Retail technology: APIs, algo platforms and automation
  6. 6Machine learning in trading and asset pricing
  7. 7LLMs, "AI agents" and "AI trading bot" claims
  8. 8Model risk, testing, deployment and kill switches
  9. 9Regulation of algorithmic trading
  10. 10How to read technology and AI claims
  11. 11Key numbers
  12. 12Landmark firms and cases
  13. 13Pitfalls
  14. 14How an expert thinks about it
  15. 15Glossary

Companies in this study