Low latency can be critical issue
What are the issues concerning latency and how does this impact a fund’s trading?
This is an extended version of an article appearing in Technology Round Table: challenges ahead for the future.
The type of strategy used by a fund determines the issues it will need to overcome. While latency is an obstacle for most, best execution also needs to be ensured together with minimising market impact. The issues are further complicated by high frequency trading strategies.
Latency is primarily an issue in algorithmic trading where micro-seconds count, advises Bob Park at FINCAD. “In
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