4 ms·
I don't understand. So you can make side bets in real time with others who choose to do so. The point is that those who choose not to do so don't have to comp
by shasta 13y ago
I don't understand. So you can make side bets in real time with others who choose to do so. The point is that those who choose not to do so don't have to compete on millisecond scale response times to news postings.
- tlrobinson 13y agoMaybe, but I suspect you'd end up with worse prices. It would be hard to enforce a true "blackout period". Traders trade on all kinds of information, not just controlled data. Wouldn't liquidity tend to be lower on a non-realtime exchange, because everyone is essentially trading on outdated information, resulting in worse prices than the realtime exchange? But I know very little about this stuff, so maybe I'm completely wrong.
- shasta 13y agoThe blackout scheme is a very secondary thing. If you make interval 1 hour, then the rapid response advantage only applies to data made available in the seconds before the trading event. Rather than having a millisecond advantage on every trade, the fat pipe guys have a millisecond advantage on every 3.6 millionth trade. I think prices would be better for people not playing the low latency response game. Liquidity within an hour would probably cost a premium as you'd have to get the money from someone on the real time market.