Fast-developing Asian markets such as Korea, Taiwan, and India are “starting to twinkle and catch the eye” of electronic trading firms due to increasing regulatory scrutiny and dwindling volumes in Western markets, according to new research.

Aite Group, a US research house, published a report yesterday that said the "significant challenges" faced by US and European trading, including "increased regulatory scrutiny around algorithmic trading and high frequency trading", were forcing electronic traders to look further afield.