Good Morning Clo!
Let me take the liberty of cutting and pasting a piece of the Bloomberg Article on High Speed Trading!
Very interesting.
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Disrupting Strategy
The investigation threatens to disrupt a model that market regulators have openly permitted for years as high-speed trading and concerns about its influence have grown. Trading firms pay to place their systems in the same data centers as the exchanges, a practice known as co-location that lets them directly plug in their companies’ servers and shave millionths of a second off transactions. They also purchase proprietary data feeds, which are faster and more detailed than the stock-trading information available on the public ticker.
“We publicly file with the SEC for each and every one of these services, and we’re always engaged with government officials around the world,” Robert Madden, a spokesman for New York-based Nasdaq, said in a phone interview, referring to the U.S. regulator. He and Eric Ryan, a spokesman for NYSE, declined to comment on Schneiderman’s investigation.
Dark pools, including Goldman Sachs Group Inc.’s Sigma X and Credit Suisse Group AG’s Crossfinder, operate without the same regulatory oversight as the public exchanges and disclose little about their trading or the participants. Michael DuVally, a spokesman for New York-based Goldman Sachs, declined to comment, as did Drew Benson, a spokesman for Zurich-based Credit Suisse.
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Incredible new term for every trader to understand.
"co-location".
Co-location is an adroit way to avoid the world knowing that you are getting information faster than they are.
How?
By sharing servers with your news source.
This situation has universal ramifications on every market around the world. It is historically interesting how New York State ends up policing the worlds markets over and over again.
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