4461speed trading in financial markets
- 2 Jan 17:09High-frequency trading (HFT) by computer replaced trades on traditional exchange floors a decade ago, and the speed of trading is fast approaching the speed of light. The increased speed of transactions makes it difficult to make money trading equities and bonds. In addition, financial markets are increasingly vulnerable to flash crashes such as the one experienced in May of 2010.
The following timeline, from a Big Read column in the Financial Times, summarizes the accelerating pace of trading since a telegraph cable was first laid beneath the English Channel in 1851. (Much of the early history is left out, including a successful transatlantic cable, laid in 1866 between England and the USA.)
Continues at TdJ http://larrywillmore.net/blog/?p=11179