Trading in gold futures and exchange-traded funds linked to gold intensified within 1 millisecond of 2 p.m. eastern time on Sept. 18, when the Fed released a statement saying it would refrain from tapering its $85 billion in monthly bond purchases, according to Nanex LLC, a firm that analyzes high-frequency trading.
The quick response is unusual because information takes seven milliseconds to travel to Chicago from Washington, where the Fed statement is released, according to Nanex. The time between Washington and New York is two milliseconds, Nanex said. The trading wasn’t possible unless the statement had been available in those financial centers before the 2 p.m. embargo time in Washington.
| 