Friday, 27 September 2013

Splitting hair on Milliseconds

Been late to this beat... but then I got hang of this detail only today.

"That’s not possible, Nanex concluded, unless the data (released in Washington from the Fed) was transmitted to servers located in Chicago because there are milliseconds of latencies involved with passing along that information. It also raised the possibility that the data leaked to market participants early, allowing about $800m in futures contracts to trade milliseconds before the rest of the market learned of the decisions."

$800mn trade in 8mS early through FT Alphaville

Freaking cheating.