3 ms·
Doesn’t flash trading basically contribute compute to force prices to settle at equilibrium faster thereby improving pricing efficiency? I’m not sure it’s wort
by pfannkuchen 2y ago
Doesn’t flash trading basically contribute compute to force prices to settle at equilibrium faster thereby improving pricing efficiency?
I’m not sure it’s worth the required effort input at a system level vs other places the effort could be applied, but there is at least some abstract benefit to it, I think.
- sshine 2y agoA study by the SEC in 2014 stated that very high trading frequency is "unnecessary" (below 0.2s), but failed to identify clear downsides or damages to the markets. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2363114 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2363114