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Re: $1.5 billion: The cost of cutting London-Tokyo latency by 60ms


From: Joel jaeggli <joelja () bogus com>
Date: Fri, 23 Mar 2012 16:16:26 +0100

On 3/23/12 14:47 , Valdis.Kletnieks () 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.




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