[1]
MIT’s Technology Review, which is well read among technology and business leaders, highlights the growth of high frequency trading (HFT) in
Trading Shares in Milliseconds [2]. The article examines the low-latency market through the eyes of several firms specializing in high frequency trading, but then shifts into a lengthy discussion of potential risks presented by the trend.
The piece includes some data on the shift of trading volume to electronic platforms, which now account for 61 percent of daily trading. The Tabb Group estimates that high frequency trading generated an estimated $8 billion in profit in the first nine months of 2009.
“Trading is now essentially a virtual art, and its practitioners put such a premium on speed that NASDAQ has considered issuing equal 100-foot lengths of cable to the brokers who send orders to its exchange servers,” the Technology Review piece notes.
Low latency trading has become a big business for a number of players in the data center space, especially Equinix (EQIX) and Savvis (SVVS). The major players in low latency trading are making big investments in the space, which have made
northern New Jersey [3] one of the hottest data center markets in the country
For more on this topic, check out our
High Frequency Trading Channel [4] or see these resources:
Cabling image by Sugree [9] via Flickr [1].
Rich Miller is the founder and editor-in-chief of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.
Article printed from Data Center Knowledge: http://www.datacenterknowledge.com
URL to article: http://www.datacenterknowledge.com/archives/2009/12/21/technology-review-on-high-frequency-trading/
URLs in this post:
[1] Image: http://www.flickr.com/photos/sugree/3024637789/
[2] Trading Shares in Milliseconds: http://www.technologyreview.com/computing/24167/
[3] northern New Jersey: http://www.datacenterknowledge.com/archives/category/new-york/
[4] High Frequency Trading Channel: http://www.datacenterknowledge.com/archives/category/low-latency/
[5] Can High Frequency Colo Support Many Players?: http://www.datacenterknowledge.com/archives/2009/11/24/can-high-frequency-colo-support-many-players/
[6] NYSE Euronext’s Future: The Data Center: http://www.datacenterknowledge.com/archives/2009/11/24/nyse-reports-active-leasing-in-nj/
[7] NASDAQ OMX Group Expands Colo Deal with Verizon: http://www.datacenterknowledge.com/archives/2009/12/16/nasdaq-expands-colo-deal-with-verizon/
[8] Equinix Plugs Into Even Lower Latency : http://www.datacenterknowledge.com/archives/2009/11/04/equinix-plugs-into-even-lower-latency/
[9] Sugree: http://www.flickr.com/photos/sugree/
[10] Rich Miller: http://www.datacenterknowledge.com/archives/author/richm/
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