When using technology to execute trades of financial securities as quickly as possible, nanoseconds can mean millions of dollars made or lost. High speed traders already have the most optimized algorithms, fastest computers, and lightening-quick connections to try to gain an advantage. The next step is to actually try to shorten the physical distance between the points where the transactions take place. Harvard scientist Alexander Wissner-Gross has an idea: in cases where trades are between New York and London, why not trade from the middle of the Atlantic Ocean?
That's a little extreme for most firms, but he has an easier way to optimize trading distance -- and some firms are interested. Jason Palmer from BBC reports:
"I'm now working... with real companies on real deployments that don't require you deploy a floating data centre in the middle of the ocean; we say, 'OK, you have your existing infrastructure, that's not moving - now, given your location, which stocks in various locations are you best positioned to trade?'"
"If you don't have the budget to put new data centres in the middle of the ocean you can, for example, use existing data centres that are an approximation to the optimal location in the ocean - say, Nova Scotia for New York to London," Dr Wissner-Gross told BBC News.
Read the full story at the BBC.
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