High frequency trading and certain parallel computing tasks need low-latency switches with as little jitter as possible, and they are willing to pay a hefty premium for those qualities. This was one of the founding premises of switch upstart Arista Networks, and Cisco Systems has revved up its Nexus 3000 series switches to try …
"The Nexus 3548 is available now and has a base list price of $41,000, or around $854 per port. That's considerably less expensive than the 24-port Arista 7150S switch, which costs $12,995 or around $541 per port. "
How is $41k for 48 ports less expensive than $26k for 48 ports? or $854 per port less expensive than $541?
in any case these high freq traders make so much $$ screwing the rest of the investors (not me of course since I don't invest). that cost really doesn't matter, it's a one time purchase price. They make it back in a matter of seconds, minutes, or maybe hours if they suck.
I think the best way to fix the "problem" would be to put a 1 minute delay into all trades.
If a normal person came up with a way to game the system like that they would be in jail before you could say "you are not a bank".