High-Frequency Trading on LME May Advance to 20%, Marex Says

High-frequency trading in metals may rise to as much as 20 percent of the volume on the London Metal Exchange in a couple years, Marex Spectron Group said.

High-frequency trading accounts for less than 5 percent of the volume on the LME and higher volumes on the Comex in New York, John Lowrey, global head of electronic trading and direct market access services, said today in an interview in London.

“It’s a very small market, but it will grow,” Lowrey said. High-frequency trading, which uses algorithms to analyze markets and execute orders based on market conditions, accounts for 60 percent of trades in the stock market, he said. Newedge Group and Marex are the biggest providers of services to high- frequency traders, he said.

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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