2 ms·
It points out the problem, that some firms have faster access to trade data than others, but proposes no solutions. How to make that not true? I think the low l
by damienkatz 17y ago
It points out the problem, that some firms have faster access to trade data than others, but proposes no solutions. How to make that not true? I think the low latency colo data centers with equal length cable for all might be as good a solution you can hope for.
- wmf 17y agoI read that there is a stock exchange (Taiwan? I don't remember) that executes batches of trades on a fixed schedule, like once per minute. Getting a trade in a few milliseconds earlier makes no difference if it falls in the same batch.
- loganfrederick 17y agoOh the the issue there is that puts a limit on the liquidity of the market. In a case such as the 1987 crash, it's possible the such a delay in trading would've lowered stock values further as the volume of buyers versus sellers would've been less clear and selling pressure could've pushed down securities further before buyers could evaluate proper values.