The Strategy Wall || 29th Edition

THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK

“In reality strategy is actually very straightforward. You pick a general direction and implement like hell.”

Jack Welch

CROWDSOURCING IN CONSULTING: FAD OR THE FUTURE?

INDIAN INSTITUTE OF MANAGEMENT, SHILLONG

The “most insightful sign of whether an industry needs disruption is typically a dearth of innovation or development from sector-leading firms This tendency is also affecting the management consulting sector, which is currently going through a significant disruption that is expected to reshape and improve the sector Although the sector continues to generate billions in earnings, total revenue growth has actually been declining over the previous few years. This is due to a number of factors, such as the lack of effectiveness and depth of actual consulting services; institutions' preference for a particular type of corporate-centric employee, which results in workers at firms having a onedimensional perspective on international and business affairs; and early industry pioneers having created an ineffective status quo that harms the broader economy This is what sets the stage for crowdsourcing.

The global rise of the gig economy and the growing acceptance of crowdsourcing as a workable substitute for small and limited numbers of experts are two of the leading forces propelling the paradigm shift in the consulting industry. These developments have ushered in a new era of cutting-edge management consulting, which has a number of advantages over the industry's conventional approach The use of crowdsourced management consulting, for instance, encourages consulting firms to innovate and offer fresh perspectives.

In layman's terms, turning to a group of people to get the information, products, or services one needs is a process known as crowdsourcing Combining the words "crowd" and "outsourcing," the term "crowdsourcing" is coined As the term suggests, crowdsourcing refers to the process whereby a person or organisation approaches a group of individuals (the crowd) for specific resources This method has been employed by a wide range of companies, people, and organisations to collect ideas, raise funds, and compile and disseminate information. These organisations use the internet, social media, and purpose-built platforms to find and obtain the information, products, or services they need As a result, they may interact with a broader range of sources than they could if they only used their employees, suppliers, and other conventional sources of expertise

With the help of technology, organisations may reach large and quick crowds via crowdsourcing While social media platforms and the internet are the foundational technologies for crowdsourcing, there are also specific crowdsourcing tools that can help with this project Specific forms of crowdsourcing are made possible by some technologies For instance, Amazon Mechanical Turk, often known as Mturk, connects companies with people to complete what it refers to as human intelligence activities. Meanwhile, vendors provide crowdsourcing platforms for specialised markets, such as charitable groups seeking to interact with activists over a range of problems and businesses, hoping to engage its workforce to assist in developing new business strategies.

Traditional consultants cannot expect to keep operating in the same manner and get good outcomes in the face of an exponential rise in competition and a wealth of alternative viewpoints. Customers now have a wider selection of consultants to choose from as a result of increased competition, increasing their chances of finding a specialist with the required niche expertise.

This approach is working for Wikistrat, which already has a networked platform with thousands of advisors in numerous specialties. A client's issue is distributed to multiple groups of consultants, who compete with one another to come up with the best and most insightful answers in the firm's recently constructed novel simulation system The business has discovered that a competitive problem-solving atmosphere yields particularly thorough and hitherto impossibly high results Large technological and mining businesses on the Fortune 500 list are among the firm's current commercial and public sector clients. However, Wikistrat is not alone; the business GLG also has a reputation for innovation GLG employs a point-to-point interview format known as "Expert Calls" and works with hundreds of thousands of experts Clients can explain the precise criteria of what they are looking for and receive highly relevant solutions using this method.

These models are perfect for businesses searching for quicker, more efficient solutions so they may concentrate on growth rather than pricy, time-consuming procedures.

n addition, the exponential growth of Big Data and Artificial Intelligence has made it possible for the masses to understand vast amounts of complex data with incredibly deep insights Due to this, established organisations with whole floors devoted to business intelligence can compete with smaller advisory firms and even individual freelancers

To be sure, several major firms already feel the strain of having to innovate as they start acknowledging the realities of their outdated business models For instance, Deloitte is establishing itself and setting itself apart from its rivals as it seeks out cutting-edge technological solutions for its clients The corporation's creation of the Pixel Unit, a platform for crowdsourced business consulting, seems to be a copy of its smaller competitors

It is evident that conventional management consulting is out of date Smaller, more specialised, and niche businesses are starting to replace the pioneering companies that stagnated for far too long. Previously a luxury for wealthy and established organisations, management consulting can now become a mainstream tool that is accessible to all businesses, big and small, thanks to crowdsourcing, Artificial Intelligence, and other data-driven technologies If only the sector, as a whole, would adopt the models and methods of its newest companies, it could indeed experience tremendous growth ”

FUTURE OF GREEN FINANCING IN INDIA

WELINGKAR INSTITUTE OF MANAGEMENT

Green Finance comprises the financing of public and private green investments and public policies. It contains the components of the financial system that deal specifically with green investments India has set the target of cutting down its emissions to net zero by 2070 and increasing its non-fossil fuel energy capacity to 500GW Along with this, India also needs to focus on improving the growth of green finance. Climate Policy Initiative in its report titled ‘Landscape of Green Finance in India’, claims that the tracked Green Finance in 2019-20 was Rs. 3,09,000cr Per annum.

Green Finance comprises the financing of public and private green investments and public policies. It contains the components of the financial system that deal specifically with green investments India has set the target of cutting down its emissions to net zero by 2070 and increasing its non-fossil fuel energy capacity to 500GW Along with this, India also needs to focus on improving the growth of green finance. Climate Policy Initiative in its report titled ‘Landscape of Green Finance in India’, claims that the tracked Green Finance in 201920 was Rs. 3,09,000cr Per annum.

Green Banking:

Green Climate Fund:

A green fund can be a tool that can unlock financing and scale up clean energy growth in the market. A green fund reinvests the income and hence makes an effort to recycle the funds which can create a significant impact compared to how government securities would have impacted A green fund investment is a supportive hand to the banking sector by their innovative interventions in the financial world.

Green Banks consider all the environmental factors having a target of protecting the environment and conservation of natural resources Green Banks can lend Green Loans to businesses considered as environmentally sustainable and thereby promote sustainability in the economy Green banks in India are still at a very premature stage and need support to function. Green Banking can be promoted with the help of some pro government policies Government can help in reducing the lending rates in case of green loans in order to increase the sustainability in the economy Creating awareness among the customers is also key to encourage green banking

Green Finance Index:

Attractive green finance indices can identify and combine companies which have a good performance towards environmental sustainability A benchmark can be created for companies in general as well as for the financial condition of the low carbon companies. The conventional indices can rate the companies according to their performance towards being sustainable India can create an independent think tank which will be tasked with specialized research in the field of green financing This can help in promoting design thinking and developing some innovative mechanisms and help India in becoming one of the world’s leading financial think tanks in the field of green financing

Promoting ESG investments and Partial Credit Enhancement Schemes:

ESG investments should be promoted through some positive government policies Partial risk guarantee schemes can help to improve the current credit profile of a financial transaction. Credit enhancement schemes can aid the banking system and can be extended towards the green financing model.

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles Scheme:

The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles Scheme launched in 2015 is a great opportunity for banks and financial institutions to help India in increasing the penetration of Electric Vehicles. The high initial cost of the vehicles obstruct the offtake and hence the adoption of Electric Vehicles is still not very high. Green Loans can be initiated by several banks as a contribution towards a low carbon economy The time period for these loans can be increased to further ease the burden of repayment and hence increase the adoption of Electric Vehicles in the country

India is working very hard to meet its climate goals and at the same time greening its finance has also been an imperative task For this, a collective vision of policymakers and concentrated efforts in the financial system is the key. Public awareness and improving the options of financing are important in order to increase growth in the green finance sector Green infrastructure development also needs to be a key area of focus in order to increase sustainability in the financial sector Funds would be required for conducting new research regarding green technology. Green Finance is a critical means to facilitate a shift towards sustainable economic growth This can be the destiny of sustainable banking as well.

WHERE WILL ACQUISITIONS LEAD US TO?

INDIAN INSTITUTE OF MANAGEMENT (IIM), ROHTAK

Anirudh Tara, Director & Partner, BCG India had mentioned “Just the disproportionate amount of impact that you’re able to create, things that you’re able to influence and companies that you’re able to move forward, makes Consultancy engrossing”

But before diving into the recent happenings in consultancy firms, let’s understand what actually a consultancy firm does. First, it provides functional expertise, say McKinsey bringing its marketing knowledge on table for its clients Second, it provides third party analysis or credible opinions and rational recommendations, for example giving advice on whether a company should go for mergers or not. Third, they bring smart people to analyse a problem and provide solutions when the clients don’t have the resources

Recently, on 4th of November 2022, Autus Advisors got united with YCP Solidiance On one hand Autus Advisors started in 2010, it is renowned in India, from Mumbai to Bangalore, to New Delhi whereas, on the other hand we have YCP Solidiance which provides services to 18 nations world-wide “The fast-growing Indian market is an important market for us and our international clients,” said Yuki Ishida, Group CEO of YCP

This year only, Protiviti strengthened its presence in India by acqui-hiring a Noida based digital transformation firm, Loumus. Protiviti, which has been in existence for the last 40 years, has headquarters in the US adds eighth office in Noida through Loumus data system.

“We look forward to the next phase of augmenting our solution offerings to clients, catering to their digital and tech-based requirements The addition of Loumus expands our delivery capacity and knowledge base as we bring leading thinking and capabilities to our clients,” said Sandeep Gupta, Managing Director and leader of Protiviti’s Technology Consulting practice While Loumus will expand their product deliverability and knowledge base, Protiviti will allow them to work on great projects and enhance their capabilities

Also, EY has acquired Christensen Advisory India to strengthen its position in India While Christensen Advisory has companies in China and the US, EY was established in 1989 is one of the world’s largest professional consultancy firms It has around 60,000 employees in India Amit Khandelwal, Managing Partner of EY’s Strategy & Transactions division in India, said: “We are delighted to significantly expand our Investor Relations practice by welcoming the India team of Christensen Advisory.”

The future of consultancy depends on resilience and start-ups. As the economy is growing and flourishing, the factors affecting our VUCA (volatile, uncertain, complex and ambiguous) world are increasing at an increasing pace Due to this reason, companies want to distribute their knowledge throughout the company, enabling even more inquisitive minds to provide solutions Currently, many companies are merging together to create a network that can fulfil the ever increasing demand of the clients The consultancy firms have shifted from providing advice to implementation, sharing more risks with the clients

The acquisitions which we are recently experiencing are beneficial as they reduce competition in the marketplace, allow companies to grow stronger by increasing their customer base and create more value in the market as more firms can provide better services than individual firms

But on the other hand, such acquisitions have somewhat negative impacts on employees, they get stressed due to change in working conditions and environment, which if not taken care of at time, would lead to reduction in efficiency and effectiveness One of the main fears they have is the fear of losing jobs, companies usually have different working environments, this makes employees quite apprehensive and it becomes even more problematic when they can’t adapt themselves to the culture or companies’ altered goals Technological changes are also very common during such periods, to cover greater parameters, they take up different and improved technologies ,so they prefer employees who are technically inclined. That’s the reason lay-offs are very common in any acquisition.

So, we can conclude that although acquisition of consultancy firms may not be that beneficial for existing or potential investors and employees but it will be highly favourable for their clients and economy as a whole, providing better and wider solutions.

INSIGHTS FROM THE BESTSELLER: FACTFULNESS BY HANS ROSLING

Almost nobody is correct about basic global trends. Majority of us suffer from an overdramatic worldview We think that the world is in a much worse shape than it actually is. The heaps of statistics we are fed with on a daily basis, more often than not stem from personal bias, outdated facts and skewed information from the media. This combined with our intuition results in our upsidedown world view This is where Factfulness comes in handy. Through this book, Rosling helps us get rid of our global ignorance and offers us a new framework for how to think about the world He reveals 10 dramatic instincts that distort our perspective about the world and helps us combat them by adopting the stress-reducing habit called “Factfulness” Some of the breakthrough insights are highlighted in this article.

1 How often do you talk about the ‘developed’ or the ‘developing’ world? If you find yourself frequently using these labels, you might be surprised to know that these labels are no longer valid This is nothing but a false dichotomy Dichotomous thinking is an adaptive behaviour that is part of human nature. However, this can be extremely dangerous when it comes to classification of data When we think in terms of extreme opposites, we trigger the gap instinct which makes us imagine a huge divide between the two categories where as in reality, there is just a smooth range. Going back to the division of the world population, Rosling replaces the two groups with a more practical classification through his four-income group model.

Each figure in the chart represents 1 billion people, and the seven figures show how the current world population is spread out across four income levels, expressed in terms of dollar income per day

ST. XAVIER’S COLLEGE, MUMBAI

The above chart is representative of how people on different income levels meet their basic needs. It allows us to understand how people’s lives can change gradually with more money. When the world is divided into these four levels, it helps us understand that today, the vast majority of people are spread out in the middle across levels 2 and 3 and therefore the world population cannot just be divided into the two groups of ‘developed’ and ‘developing’. Hence, Factfulness helps us replace our instinctive dichotomous classifications with better categories that provide more clarity

2. Do you often tend to get things out of proportion?

Given the example of Swine Flu and Tuberculosis as causes of fatalities

According to a survey, over a period of two weeks, 31 people had died from swine flu and roughly 63,066 people had died from TB However, the news coverage for each death caused due to swine flu was almost 81760 times that of the death caused due to Tuberculosis. In the same way, plane crashes always make the news but car crashes which kill far more people, almost never do Common causes of death are underrepresented by the media while deaths due to natural disasters/ terrorism are overrepresented simply because they make for better television. Of course each death is tragic but in order to save more lives we should put in maximum effort and resources in fighting the leading causes of death first. Delving into a state of hysteria and ignoring the more significant things is a product of the size instinct. The 80/20 principle mentioned in the book, known as “Pareto’s Principle” helps in controlling this instinct. It asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. It helps us to prioritise things that are of vital importance. Pareto Charts are based on this principle Below is an explanation of them using a random example.

A Pareto Chart is a combination of a bar graph and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line The left vertical axis represents any important unit of measure often the frequency of occurrence or cost. The right vertical axis is the cumulative percentage of the total number of occurrences, total cost, or total of the particular unit of measure. From the above example, we can infer that 80% of the restraint complaints are due to only ~20% of the reasons

In this way, the 80/20 rule puts things into perspective by presenting the bigger picture. It is helpful in identifying areas which could use more effort and resources to achieve maximum efficiency.

3 Do you often assume apparently straight upward trends to be a part of a straight line? Take World Population for example Most people think that the world population is just increasing They think better healthcare facilities, lower child mortality rate, increase in life expectancy eradication of extreme poverty and radical religious beliefs lead to more survivors which cause this rapid growth It’s not that these are invalid reasons for population to increase but it is just that none of these are the main reason

To our surprise, it is not a straight line but more like a slide in the playground The curve is expected to flatten out at somewhere between 10 and 12 billion people by the end of the century

The radical change that is needed to stop the population explosion is that the number of children stops growing And that is already happening because over the last 50 years the number of babies per woman has dropped to an amazingly low world average of just below 2 5 Isn’t it comforting to learn that we are already on the path of progress? It is just a matter of time until the population growth stabilizes. You might be wondering if that’s the case then what is the reason for the increase in population by over 3 billion The reason is a product of the “fill-up” effect. Children born in the past decades (and their parents) will gradually replace previous and smaller generations Within three generations, the “Fill up effect” will be completed and the population will stabilize.

The dashed line represents what we instinctively imagine We think that the line will just continue straight if no drastic action is taken. This is the straight line instinct which makes us assume that we know how curves continue beyond what we see.

The actual world population forecast is somewhat like this:

But what is striking here is the difference between our assumption and the reality. At a first glance at the graph, we would straight panic thinking that the population will just keep increasing in the future and we tend to rule out anything else that would prove otherwise Hence, it is useful to know that curves come in different shapes An apparently straight upward trend could be of any shape, it could be a part of a straight line, an S-bend, a hump or a doubling line.

In the above graphs, the straight lines do not continue indefinitely but are a part of a larger S-Bend Curve

4. At last, I would like to draw your attention to the data visualization tools used in the book to explain the global trends in a more understandable manner Now as we all know that data is much more valuable when it is visualized Charts and graphs help the human brain interpret and understand data better. Dollar Street and the famous animated bubble-chart tool called Trendalyzer are two of the inventive visualization tools used in the book

·Dollar Street is the brainchild of Anna Rosling where she uses photos and data to understand how people live. Dollar Street is a street which arranges people according to their income, poorest to the left and richest to the right and uses pictures to allow people to understand what the standard of living looks like on different income levels

·Trendalyzer is an interactive bubble-chart which is used across the world to understand multidimensional time series In 2007, the tool was acquired by Google

If you found these insights helpful, you can only imagine the wealth of knowledge that you can gain after reading the entire book Factfulness emphasizes on the need to upgrade. What we learn in school is often outdated information and what we see in social media is often sensationalized and blown out of proportion Hence, Factfulness comes in handy to fix our distorted views of the world by giving us a quick fact-check.

AnexampleofTrendalyzerSoftware

Note:NorthandSouthmeanhealthyandsick.EastandWestmeanrichandpoor.Thesizeofthebubbleindicatesthepopulationofthecountry.

SQUARE-OFF: ALGORITHMIC TRADING

INDIAN INSTITUTE OF MANAGEMENT, SHILLONG

The best trading strategy in the world won’t do you any good if you allow emotions to trump logic Algorithimic trading is a very effective and efficient trading approach The removal of human interaction and emotions from trade is the most essential element of algorithimic trading. It operates on predefined parameters, removing deviations It aids in the maintenance of discipline, which is regarded as the most crucial aspect of any trading technique. Algorithimic trading aids in the reduction of subjectivity and guarantees that decisions are made objectively.

What is Algorithimic Trading?

The technique of employing pre-programmed trading instructions to execute trade orders at rapid speed in the financial market is known as algorithimic trading. Trading software is used by investors and traders to supply trading instructions depending on time, volume, and price When the specified instructions are activated in the market, the trading program executes the investor's orders. This style of trading aims to make use of a computer's speed and processing capacity in comparison to human traders. It is commonly utilized by investment banks, pension funds, mutual funds, and hedge funds that may need to stretch out the execution of a larger order or make transactions that would be hard for humans to accomplish

History and Growth

An algorithmic trader employs cutting-edge technological advancements to get information quicker than others and then execute trading orders faster than others Surprisingly, the phenomenon of "rapid information" delivery dates back to the 17th century. Julius Reuter, the founder of Thomson Reuters, utilized telegraph lines and a flock of carrier pigeons to manage a news distribution system in the nineteenth century. The advent of the New York Stock Exchange's "designated order turnaround" system (DOT, and subsequently Super DOT) in 1976, which directed orders electronically to the correct trading post, which manually executed them, was a watershed moment in financial market computerization.

The Securities and Exchange Commission (SEC) of the United States legalized electronic exchanges in 1998, opening the door for automated High-Frequency Trading. HFT can execute transactions 1000 times quicker than humans Since then, algorithmic trading has grown in popularity The Securities and Exchange Board of India (SEBI) started algorithmic trading on April 3rd, 2008, by granting institutional clients Direct Market Access In summary, DMA enables brokers to supply its infrastructure to clients and provide them with access to the exchange trading system without their interference Initially, it was only available to institutional clients, not regular dealers.

The Procedure for Creating Algorithmic Trading

Making an algorithmic trading function entails the following steps

Developing a Trading Strategy: The first stage is to establish a trading concept that will serve as the foundation of your trading strategy. a pattern that may have market forecasting potential The most effective methods are ones that most other market players have not discovered, and they can only be discovered through thinking in uncommon ways or being innovative.

·Backtesting: Once you've decided on a trading strategy, it's time to start "backtesting." Backtesting is the practice of validating or disproving an idea by testing it using previous data

Curve fitting: When your trading technique is fitted to random market noise rather than genuine market behavior, it is said to be curve fitting. Trading a curve-fit approach is similar to gambling because the technique has no edge. Curve fitting can ruin your trading career if the proper robustness testing procedures are not used

Making a Portfolio: Many traders spend all of their time seeking the ideal trading method and lose sight of the broader picture Because algorithmic is run by a computer, you may trade an almost infinite number of strategies simultaneously as an algorithmic trader The more you diversify across markets and periods, the lower your risk. When you construct your strategy portfolio, you will discover how much of a difference having the appropriate strategies can make to your total earning potential When one technique fails, you want another to succeed so that you may expand your position size and profit in the long run

Monitoring: Several things may go wrong, and even as trading software improves, there will be hitches. The only way to reduce the danger of experiencing catastrophic losses due to hardware or software failure is to periodically monitor order execution, which is a small price to pay to enjoy the benefits of algorithmic trading

Benefits of Algorithimic trading

Speed: Orders are performed in fractions of seconds, which a person cannot do, and the speed is so accurate that the deal may be executed at the exact price

Opportunities: This includes the ability to employ many indications and carry out commands that no person can. Traders also have additional trading possibilities as a result of speedier research and execution

Decision Making: Volatility in the market may necessitate a very rapid and correct response, as well as the elimination of emotions Multiple transactions may be handled by the algorithm in a fraction of a second. Professional trading necessitates a high level of discipline, devotion, and focus A competent trader must maintain his calm and attention at all times. When making decisions, traders must exclude emotional and psychological variables It's simpler stated than done

Costs and Liquidity: Transaction costs are decreased, and time is saved since it can perform a large number of traders in a short time To follow the price, a trader does not need to be glued to their screen during the market hour. Algorithmic trading contributes to market liquidity by allowing you to trade a high volume of shares in a matter of seconds

The Dangers of Algorithmic Trading

·System Failures: Traders must rely on technology to do business. A key downside of Algorithmic trading is the possibility of system failure or a poor internet connection A single flaw in the algorithm might cause you to lose a significant amount of money on a single transaction

·Mechanical failure or error in coding strategies: Because Algorithmic trading is automated, there is no human control. Once the strategy has been written with instructions, a trader cannot exit the deal even if he subsequently recognizes that the approach will not work.

·Risk of being Outsmarted: Traders must check the system to verify that no duplicate or missing orders exist. Traders must always improve their technical abilities to build the algorithmic

Prerequisites for doing algorithimic trading

Analytical abilities: An analytical mindset is a vital trait for any quant trader/developer, given a large data collection, to detect patterns in it. and how you handle any given situation objectively

Mathematical abilities: Because the core of algorithmic trading revolves around algorithmic, data, and programming, algorithmic/HFT trading requires reasonable programming skills as well as a basic understanding of statistics and calculus

Programming abilities: Knowledge of a programming language is advantageous because it allows you to function independently. Traders are interested in learning about the long-term effects and benefits of coding, particularly ‘Python for Trading

Logic and Reasoning: When developing a strategy, it is critical to understand the risks and benefits of that approach to decide whether it has a competitive advantage in the market This is done during a strategy's backtesting. Before going live with the strategy in the markets, the frequency of trading, instruments traded, and leverage must all be considered.

·Financial Markets Understanding: Quantitative trading entails dealing with massive financial datasets and trading in various instruments such as stocks, futures, currencies, and so on. As a result, even if you come from a non-finance technology background, you will need a good grasp of financial markets to work as a developer in a quant business.

·Econometrics: Modern quantitative trading relies heavily on financial econometrics. For predicting objectives, cutting-edge systematic trading algorithmic make considerable use of time-series analytic techniques.

India's Algorithmic Trading Future

SEBI recently recommended a framework for algorithmic trading by individual investors, in response to the increased usage of Application Programming Interface (API) access, which allows trade automation While orders generated by an API can be identified as such, brokers cannot distinguish between algorithmic and non-algorithmic orders Due to the inability of retail investors to identify algorithmic trading via API access, the requirement for algorithmic approval by stock exchanges before deployment is bypassed, resulting in the rise of 'unregulated and unapproved' algorithms, which may be used to entice retail investors by unregistered and unregulated entities by falsely guaranteeing higher returns.

The framework proposed by SEBI has recommended that all orders originating through API access supplied by brokers to ordinary investors be classified as algorithmic orders, which must be identified by a unique ID and validated by the appropriate authorities Furthermore, before deployment or modification, all such algorithms and revisions must be approved by the stock exchange Furthermore, regardless of the developer, all algorithms would be required to run on the brokers' servers, so that the broker retains control of client orders, order confirmations, and other related information The broker will need to implement adequate checks to ensure that the algorithm performs in a controlled manner Furthermore, the responsible broker would be accountable for any algorithmic trading emerging from an API, as well as grievance redressal regarding the pertinent algorithmic trades Algorithmic trading is advanced in many ways; apart from the potential for high gains for the trader, it is more methodical since it eliminates the effect of human emotions and mistakes It also increases market efficiency and liquidity. Algo techniques now account for 80-85% of transactions in established markets, While India has a 50-60% market penetration of algorithmic trading, it is expected that algorithmic trading will continue to increase in Indian markets. The future of algorithmic trading forecasts that as the market expands, the resources for algorithmic trading will evolve and become more organized and efficient.

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DHRUVBANSAL KIRANP

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DISCLAIMER: THE VIEWS AND OPINIONS EXPRESSED IN THIS MAGAZINE ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THE OPINION OF THE STAKE HOLDERS OF IIM ROHTAK

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