!Fiat
Never mind a Fiat at 75 mph, where's my Delorean at 88 gone !
How much is getting trades done 6 milliseconds quicker worth? About $300m, as it turns out. A new transatlantic fibre cable promises to reduce the languid 65-milliseconds it take to transmit a trade between London and New York time to a quicker 59ms. Traders are expected to line up to use the new service and pay extra for the …
If all this is being done to speed up the automatic trades why not just move the computer across the Atlantic?
I guess the computer may be using data on a combination of markets at once, but presumably any other computer would just have the same delays and the playing field would still be flat anyway. So any decision based solely on the NYSE should be done by a computer in NY and anything on multiple markets should be in Greenland or where ever is suitably in the middle (perhaps another couple in Hawaii and Iran?).
except that no useful information would actually be generated on the tiny island in the middle of the ocean: ultimately it would still be in the business of transmitting information from one end of the line to the other. 29.5ms to get the data from NY, 29.5ms to transmit it to England, adds up to...oooh lookit that, what a coincidence!
While viewing that other form of electronic information , I sometimes see those Americans huddled in front of multiple screens with graphs all over them.
They all seem to be frozen ,staring at these speedy information providers and seldom moving.
What is the point if the human brain (American version) is very slow in reacting?