High speed trading: Paying for an edge

Take a look at any major stock index two seconds before the monthly Thomson Reuters/University of Michigan consumer sentiment survey hits the airwaves, and the trading volume is astounding.

That’s because a small group of funds pay Thomson Reuters several thousands of dollars a month to see it first.

In the milliseconds before the survey is released to other paying clients at 9:55 a.m. ET, trading volumes can soar up to 20 times their normal levels. By 9:54:59 a.m. ET, long after computers have acted on the number, volumes have already returned to normal.

Read more

Advertisements
This entry was posted in Articles, Dark Pools, Finance, High Frequency Trading and tagged , , , , . Bookmark the permalink.

One Response to High speed trading: Paying for an edge

  1. Pingback: High speed trading: Paying for an edge

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s