High Frequency Trading: The quest for zero latency

Wired magazine has a nice article on how high freequency trading outfits are pushing the technology barriers in order to minimise trading latency, its an arms race where profit and loss can be dictated by nanoseconds.

The article also talks a little to quote stuffing where massive volumes of orders flood the market, most of which are cancelled in order to drive price movement. HFT is getting a lot of bad press of late what with the recent BATS IPO, Knight Capital and RBS issues to name but a few but it seems the real problem is in high freequency quoting.

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~ by kevinsmi on August 15, 2012.

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