U.S. institutional investors have reduced electronic trading, according to a research by Greenwich Associates, Finextra reports. Institutional trading volume in U.S. equities through electronic trading channels fell to 34% in 2010-11 from 38% in 2009-10.

Algorithmic trading was the only type of electronic execution that did not witness a decline. Investors are trading more through high-touch broker sales desks. The change has decreased the amount of commission available to brokers by 12% from the first quarter of 2011 to the first quarter of 2010.

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