The need for speed in financial services
Sandra O'Boyle from Current Analysis explains why algorithmic trading has made network speed essential for investment banks.
The cliche "every second counts" has become irrelevant to the world of investment banking, as measuring progress in terms of seconds is of little value to traders who need to capitalize on pricing and trend movements measured in milliseconds. There are situations where traders would rather not trade at all than trade late. As more and more trading is electronic and automated, any weak links that create delays are increasingly the difference between profit and loss. The key driver in this market now is algorithmic trading, which has created exponential growth in trade volumes.