After seeing the recent reddit post on FPGAs, and how they could be used for possibly negative latency execution, it reminded me of an article on latency and trading:
This article points to how others have tried to get to the markets early. For example fast boats to London to short Confederate bonds when the civil war ended and the use of the telegraph. Fast horses between New York and Philadelphia, pigeons, and Telegraph are other examples in the article.
Today fast algorithms, fast paths to the trading floor (microwaves between Chicago and New York), and custom hardware (like FPGAs) seem to be used. One article mentioned that some trades make trades between Chicago and New York at a pace faster than light, possibly using predictive algorithms.
How have people in the past and present reduced latency?
Submitted October 22, 2020 at 08:51AM by RoundUpTo100