High-frequency trading strategies will account for nearly a third of foreign exchange trading volumes by 2013, according to a new report from US research firm Celent, as strategies developed in equity trading penetrate other markets moving to all-electronic trading.

HFT volumes have rocketed from a base of 5% of turnover in FX markets in 2004 to 28% this year, said Celent analyst Sreekrishna Sankar, author of Technology Choices in High Frequency FX.