5 ms·
>I wish one of these venues would have the conviction to put their whole kit in Dallas, or somewhere else in TX, but the industry would throw a fit because of w
by GenerWork 2y ago
>I wish one of these venues would have the conviction to put their whole kit in Dallas, or somewhere else in TX, but the industry would throw a fit because of what it would mean for the cost to access the market.
I realize this is probably super complex, but can you explain this more? Specifically, what does cost mean in this context? Is this in terms of listing on an exchange, or cost benefit such as being physically further away from NYSE or Nasdaq?
- bobthepanda 2y agoIf you are doing HFT every ms counts, to the point where firms spend billions on new submarine cables between New York and London to shave off time
- azinman2 2y agoThat would imply the decision making is happening outside of the locale. Why wouldn’t a firm just have their algorithms run loose on a machine as close to the source as possible?
- positr0n 2y agoWhat's happening is arbitrage between New York and London, not decision making in London for New York listed stocks.
- kasey_junk 2y agoBecause you need to be close to the other venues where the symbol trades.
- HolyLampshade 2y agoVarious financial products have value impact on other products around the world. In order to price orders appropriately in a given region you need the most up-to-date price information available, especially if you are looking to avoid being on the receiving end of arbitrage trades. The same is obviously true for the arbitrageurs.