The $300m cable that will save traders milliseconds
What I don;t get is if the difference can mean an extra 100M then surely it is worth setting up an office next door to the exchange and trading from there.
It doesn;t make sense to trade from London if you are going to miss out on a huge chunk of profit.
Sure the medium guys who earn a fair crust might benefit from it but they are only still trading from london because the speed increase from moving out there isn;t enough for them to make the move.
It doesn;t make sense to trade from London if you are going to miss out on a huge chunk of profit.
Sure the medium guys who earn a fair crust might benefit from it but they are only still trading from london because the speed increase from moving out there isn;t enough for them to make the move.
-
superfrank
- Posts: 2762
- Joined: Fri Aug 14, 2009 8:28 pm
They do do that - for HFT it obviously makes sense to have the algorithms running on a server as close as possible to the exchange servers.
I'm a bit confused too.
another related story... http://www.ft.com/cms/s/0/2d62bcfa-ad26 ... z1Y82NMlQN.
I'm a bit confused too.
another related story... http://www.ft.com/cms/s/0/2d62bcfa-ad26 ... z1Y82NMlQN.
-
JollyGreen
- Posts: 2047
- Joined: Sat Mar 21, 2009 10:06 am
I wouldn't want to be the engineer who has to go out and fix a cable fault 
