RoZetta’s own analysis of message rates at peak trading periods transmitted across its vast Tick History data capture network, draws similar conclusions to Professor Michayluk, that increased trading activity is largely driven by automation which in turn leads to more liquidity and more efficient markets.

And speed really does count! In 2010, Spread Networks laid a fibre cable between Chicago and New Jersey specially for HFT use at a cost of $300m. Today, just 7 years later, that link is all but obsolete, replaced by much faster wireless microwave links and switching software achieving a message turnaround speed of just 8.5ms between the two cities.

To read Professor Michayluk’s full article, click here.

(Professor David Michayluk is investigating whether the lines are blurred when trades occur in nanoseconds. Photo: Damien Pleming)