3 ms·
My understanding was that the markets have a duty to provide equal access to information that would determine your decisions. This is one of the reasons why co
by maruamx 10y ago
My understanding was that the markets have a duty to provide equal access to information that would determine your decisions.
This is one of the reasons why companies often release their quarterly results after market close. It allows all relevant parties to be able to access the latest information before selling resumes.
If this wasn't the case, then users with the fastest connections would be able to process, and react to the data before others in the market had a chance to do so as well.
- narkee 10y agoWait, isn't that the entire point of high-frequency trading and their low-latency access to markets?
- lmm 10y agoSure - market-makers need to react quickly. But that's only during the hours when the market is open. If there's no market, no-one needs to be quick about it.
- harmegido 10y ago1) HFT is more than just US equities. Many exchanges are open 23 hours a day. 2) Many HFT firms do not specialize in 'news-reading'. That is, they will sit out periods when an expected announcement is coming. You can observe this by looking at the liquidity of a product just prior to an expected relevant news release - there will be very few orders. 3) There are more events than just news events that require speed.