3 ms·

This implicitly describes the value HFT contributes to the market, vis a vis liquidity enhancement.

• d--b 9y ago
  Why would markets need sub-millisecond liquidity?
  • poikniok 9y ago
    Why do you need more than 640K of ram?
  • vostok 9y ago
    Suppose I am making markets in SPY. I need to know where everything else is trading so that I can price it. If my prices are stale by a millisecond then I get filled on my SPY market making orders, but can't get my hedge in the other products because the market has moved against me.
• kgwgk 9y ago
  Except that the liquidity dries up when needed.
  • dsacco 9y ago
    How so?
    • kgwgk 9y ago
      https://www.bloomberg.com/news/articles/2016-10-24/bundesbank-says-high-frequency-trading-can-enhance-volatility https://www.bloomberg.com/news/articles/2016-10-24/bundesban... http://www.cftc.gov/idc/groups/public/@economicanalysis/documents/file/oce_flashcrash0314.pdf http://www.cftc.gov/idc/groups/public/@economicanalysis/docu... http://www.economist.com/blogs/newsbook/2010/10/what_caused_flash_crash http://www.economist.com/blogs/newsbook/2010/10/what_caused_...