Flash Boys by
Michael Lewis examines the world of High Frequency Trading (HFT) and modern
Wall Street banks. In the past few years small HFT firms have emerged in New
York that make money by processing several transactions per day. They rely on
their computers placed very close to the exchange computer in Hoboken, New
Jersey. The close proximity to the exchange allows them to receive information
faster than that of large Wall Street banks, thus they can profit greatly on
the trades of everyday investors. This trend has shown that the speed of data
has become an extremely valuable commodity on Wall Street.
No comments:
Post a Comment