4 ms·
Eliminating the subpenny rule sounds like a good idea, but it wouldn't address the advantage of responding to news quickly, would it?
by nimble 13y ago
Eliminating the subpenny rule sounds like a good idea, but it wouldn't address the advantage of responding to news quickly, would it?
- kasey_junk 13y agoIt's not that it would eliminate it, but it would make the margins to due pure latency arbitrage so small as to make it not worthwhile (in theory anyway). That said, there is and always will be an advantage to players that can respond more nimbly to changing market conditions (news being one input to this) and there is no inherent problem with that (and there may be lots of positives to the market as a whole).