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The popularity of these strategies has spawned a cottage industry called "co-location," or "proximity hosting." Exchanges sell the funds "rack space" in the dat
by ckinnan 17y ago
The popularity of these strategies has spawned a cottage industry called "co-location," or "proximity hosting." Exchanges sell the funds "rack space" in the data centers where their servers process trades to gain an extra couple of milliseconds on the competition.
The ultimate in optimization.
- ggruschow 17y agoSerious discussion of hosting your software on their servers started a couple years ago. I don't think anyone's done it yet, but people have at least built the technology out. Of course, it's really stupid. Nobody that actually wants to own the stock or sell an investment cares about the difference of 50us. The competition at that level is at best inane. At worst, it makes it worse because it discourages people from trading real size and floods the world with all the little nearly meaningless quote updates.