High frequency trading speed edges yield tens of billions in annual profits

Evidence

With the emergence of so-called high frequency trading since the authorization of electronic exchanges in 1998, the ability to gain a slight edge in the number of transactions per second or the speed at which the algorithms in one’s computer program can process information and switch trading strategies can mean tens of billions of dollars in annual profits. — Hartmut Rosa, Social Acceleration, 14

Categorization

• SHARE: Good tidbit for someone into markets/finance — the absurd scale of millisecond-speed edge profitability.
• XREF: Relates to Constructing a Market on financial derivatives and the CBOE founding. — connects to: Computers multiplied financial instrument complexity and accelerated trading to near light speed. — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 226; Financialization includes automated high-frequency trading where computers execute most exchanges — Max Haiven, Cultures of Financialization, 71; Social media’s data selling parallels financial high-frequency trading — Aris Komporozos-Athanasiou, Speculative Communities: Living With…, 182 (+1 more)

Broader Connections

• Financialization includes automated high-frequency trading where computers execute most exchanges #expands (0.95) — Max Haiven, Cultures of Financialization, 71
• Accelerated algorithmic trading causes recurrent flash crashes beyond any regulator’s mastery #complicates (0.80) — Hartmut Rosa, Social Acceleration, 15
• Social media’s data selling parallels financial high-frequency trading #exemplifies (0.75) — Aris Komporozos-Athanasiou, Speculative Communities, 182