Direct Access Expands Its Reach
Abstract
Celent Communications forecasts strong growth in volumes for direct access providers, based upon increasing usage among institutions and continued market fragmentation.
In a new report, entitled Direct Access Expands its Reach, Celent examines the direct access marketplace, providing a brief history and analysis of current events in the industry and key benefits and features of the technology. The report also highlights different segments interested in the technology and the effect this interest will have overall.
The report predicts that direct access platforms will execute almost 500 billion shares annually by 2005, representing more than 35% of the total US equity marketplace.
According toFritz McCormick, analyst at Celent and author of the report, "Direct access allows a trader to bring together market data into one book and execute upon that data, amalgamating liquidity and providing for best execution. The value of such a system for both retail and institutional traders is apparent; it enables greater efficiency and reduced trading costs. This functionality, combined with increasing market fragmentation, will help the technology continue to grow in usage."