Growth

Rich and Co.

“Today’s markets require microseconds and tomorrow’s will require nanoseconds.”

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Redefining and Reimagining Speed in the Capital Markets
The capital markets have entered a new era, one that is not focused necessarily on pure speed but rather on understanding the dynamics, timeliness, measurability, auditability and transparency of speed and latency. It’s an era in which the information around speed and latency is as important, if not more important, than speed itself.

The financial markets, above all other industries, have monetized speed. So much so that a millisecond advantage in this industry comes with an estimated value…

Today, many markets are almost fully automated. Machines jockey to price, provide liquidity, search for opportunity, and negotiate a highly splintered series of markets to find the best place to trade. This creates very tight and efficient markets, especially for smaller retail-based orders.

While the impact of speed on our financial markets is constant, speed, however, is relative…Everything must continually be measured.

This brings us into a new era…in which the information around speed and latency is as important, if not more important, than speed itself.

…Speed is not only relevant to traders. Investors and regulators will also need to keep pace. While it was easier to understand and surveil markets when they were slower, as markets and information accelerate, clients and regulators need the ability to analyze markets tick by tick, computer cycle by computer cycle, to better understand what occurs in a market. This must be done at machine-time granularity and accuracy if the data and derived machine-time intelligence is to be trusted.

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Written by Rich and Co.

September 16, 2016 at 3:32 pm

Posted in Uncategorized

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