It’s an arms race, here is the WSJ:
“When many high-speed traders got their start in the 2000s, the leading technology for transmitting data was fiber-optic cable.
But starting in 2010, the speediest firms began to use microwave networks, shaving milliseconds off the time it takes to transmit information on routes such as the Chicago-New York corridor. Upgrading to microwave networks—and later millimeter-wave and laser technology—added to the costs, traders say. All this hurt HFT firms’ bottom lines just as slumping volatility was eroding their top-line revenues.”
And, volatility is historically low:
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