$1.5 billion: The cost of cutting London-Tokyo latency by 60ms
Robert Bonomi
bonomi at mail.r-bonomi.com
Fri Mar 23 21:57:44 UTC 2012
Jeroen van Aart <jeroen at mompl.net> wrote:
> Valdis.Kletnieks at vt.edu wrote:
> >> The massive drop in latency is expected to supercharge algorithmic stock
> >> market trading, where a difference of a few milliseconds can gain (or lose)
> >> millions of dollars.
> >
> > But it should be illegal to run a stock market that volatile. This can't end well.
>
> The average consumer gets a 15 minute artificial delay in trading, why
> not implement for all trades...
Virtually any consumer can get true real-time trading data if they're willing
to pay some relatively modest fees for that access -- Last I knew, the most
expensive 'real-time' fee charged by any exchange was under $200/mo. For
everything traded on that exchange. For anybody doing short-term, 'tactical',
trading, that is a "petty cash" expense.
Imposing the 15-minute delay on 'everybody', would simply give the 'floor
traders' the -exclusive' edge on those trading strategies.
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