European equity investors are reportedly increasingly replacing human traders with computers.
Reuters reported that new regulations—designed to protect investors by making the industry more transparent-- are pushing firms to turn to electronic trading for efficiency and low-cost sake.
The news outlet quoted a study conducted by consultant TAAB which indicated that European investors put 51% of their trading last year through computers connected to the stock exchange or by using algorithms to find a counterparty, compared to 46% on 2012.
The study also showed that the majority of the managers surveyed intend to perform the majority of their business through electronic channels, which can cut trade costs by two-thirds compared to trading done through a human.
Separately, regulators would like more bond trading to go electronic as well, but progress there has been much slower.