Despite the advantages, there are also some risks and challenges associated with ATS:
Technical Failures: Systems can experience glitches or downtime, which can lead to missed opportunities or losses. Over-optimization: There is a risk of creating an overly complex system that works well on historical data but performs poorly in real-time markets. Market Conditions: Rapid changes in market conditions can render the algorithms ineffective. Regulatory Concerns: Different regions have varying regulations regarding automated trading, which can complicate operations.