On 3/23/12 14:47 , valdis.kletni...@vt.edu wrote: > On Fri, 23 Mar 2012 12:53:45 +0100, Eugen Leitl said: >> http://www.extremetech.com/extreme/122989-1-5-billion-the-cost-of-cutting-london-toyko-latency-by-60ms > > Lower latency is good... > >> 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.
Notwithstanding how bad an idea high speed trading from the vantage point of those who don't participate in it, 60ms would place you at a competitive disadvantage to traders that are collocated at or near the exchange, such that if you're engaged in an arbitrage activity between two markets someone can frontrun your front-running.
