Audio – It’s down to sub-milliseconds
Philadelpia Stock Exchange CEO Sandy Frucher said he got one of the biggest come-uppances in his life when he first looked into how to be competitive with the fastest trading technologies – which 18 months ago would execute trades in 5 milliseconds.
“I found out we could develop a machine or a technology system that would execute at 5 milliseconds. But we’re in Philadelphia, so it takes 3 milliseconds to send the message back and forth,” he said. This led him to make a $6 million decision to co-locate, or to establish some machines closer in proximity to the source of where orders come in.
“Since that decision was made, the standard has gone down to sub-1 millisecond,” he said.