Role of Information Technology in the Finance Domain

Technological innovations have changed the face of the financial world. One such advancement is the introduction of algorithmic trading in the stock markets. This paper tries to analyse how technology initially got introduced in the stock market by analysing the major milestones for technology for twelve major stock exchanges based on domestic market capitalisation. It further discusses in detail the meaning of algorithmictrading and the use of the same in today's stock market. While doing so various algorithms like ZIP and GD developed during the initial phases of algorithmic trading have been highlighted. An analysis has been done towards drawing a conclusion on whether technology can replace human traders completely.