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I am doing a research paper on the effect of algo-trading on capital markets.

In order to do this, I plan to do an OLS comparison of Countries and Exchanges who ban algo-trading platforms and those who allow it.

After some googling I have been unable to find such a list.

Therefor, my question is this: What countries and/or exchanges have banned algo-trading platforms?

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The easy answer would be to look for exchanges that only have pit trading, ie people in a room that match up buyers and sellers.

As far as I know no such exchange exists any more. In my opinion the best you are going to be able to do is to compare the NYSE now with the NYSE in 1998, which is to say you wont be able to do much of a comparison at all as the NYSE, or NASDAQ of 20 years ago has very little in common with the exchanges of today.

I don't know what an "OLS comparison" is but a shot in the dark. Scott Patterson wrote a great book called DarkPools that illustrates how the markets changed from pit trading driven to computer driven. That might help you out.

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  • $\begingroup$ OLS is an econometrics technique used to find causality based upon statistical data $\endgroup$ – Dan Green-Leipciger Jan 20 '15 at 21:11
  • $\begingroup$ @Dan, are you referring to Ordinary Least Squares here? If so, why not just say that:) $\endgroup$ – chollida Jan 20 '15 at 21:33
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I am not aware of any which have, but even given that a country had banned algo-trading, if the exchanges in that country still offered electronic execution (which is pretty much essential in this day and age), then market participants can build their own software to make their trades, they just might have to alter their strategy in such a way that it is not obvious that the trades are being executed automatically.

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