Re:The mystique of Goldman Sachs
by zzleeper on Thursday December 15, 2016 @11:08AM
(#13185539)
I thought it was satire. Although you might make an argument for why reducing time-to-trade from 50ms to 100ms would not be the end of the world
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I didn't think it was satire as I believe it to be a popular viewpoint both in the larger world as well as among many folks here on HN.
Re:The mystique of Goldman Sachs
by witty_username on Thursday December 15, 2016 @11:11AM
(#13185576)
That would make markets less efficient and thus allocate capital in a worse manner.
Less efficient for literally 50 ms. Then it all balances out.
The world GDP is about $76 trillion; that means that the global economy produces about $120,000/ in 50 ms. Reducing the time to work on a trade from 100 to 50 ms gives a trading algorithm that much of an edge, which ultimately helps increase the size of that $76 trillion pie.