The $300m cable that will save traders milliseconds

by **superfrank** » Fri Sep 16, 2011 1:46 pm

http://www.telegraph.co.uk/technology/news/8753784/The-300m-cable-that-will-save-traders-milliseconds.html

by **CaerMyrddin** » Fri Sep 16, 2011 3:30 pm

Quite impressive!

by **jimrobo** » Fri Sep 16, 2011 4:13 pm

What I don;t get is if the difference can mean an extra 100M then surely it is worth setting up an office next door to the exchange and trading from there.

It doesn;t make sense to trade from London if you are going to miss out on a huge chunk of profit.

Sure the medium guys who earn a fair crust might benefit from it but they are only still trading from london because the speed increase from moving out there isn;t enough for them to make the move.

by **superfrank** » Fri Sep 16, 2011 4:40 pm

They do do that - for HFT it obviously makes sense to have the algorithms running on a server as close as possible to the exchange servers.

I'm a bit confused too.

another related story... http://www.ft.com/cms/s/0/2d62bcfa-ad26-11de-9caf-00144feabdc0.html#axzz1Y82NMlQN.