Summit Notebook

Exclusive outtakes from industry leaders

Audio – It’s down to sub-milliseconds

May 8, 2007

frucher.jpgPhiladelpia 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.

 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •