2 ms·
Maybe, 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
by tlrobinson 13y ago
Maybe, 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 Wouldn't liquidity tend to be lower on a non-realtime exchange, because everyone is essentially trading on outdated information, resulting in worse prices than the realtime exchange?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.