Tom Scott

Slowing Down A Stock Exchange With 38 Miles Of Cable

High-frequency traders have a few tactics on stock exchanges: but simply put, they gather price information faster than anyone else, sometimes even faster than the markets themselves, and use that to make a tiny profit many, many, many times. There are all sorts of solutions: but it turns out there’s a simpler one that involves physics.

Thanks to Ronan and all the team at IEX – you can find out more about them here: or on Twitter at

I fact-checked Ronan’s claim about the SEC white paper because it seemed a bit too good to be true, but he’s right: see Hu, E. (2018). Intentional Access Delays, Market Quality, and Price Discovery: Evidence from IEX Becoming an Exchange. SSRN Electronic Journal. [PDF]

Edited by Michelle Martin (@mrsmmartin)

I’m at
on Twitter at
on Facebook at
and on Instagram as tomscottgo

Articles You May Like

Keep your goals to yourself | Derek Sivers
A day in the life of a Roman soldier – Robert Garland
The Hypocrisy Of Honoring Juneteenth While Condemning Critical Race Theory
Companies Losing 100s of Billions – Global Chip Shortage
Edtech investors are flocking to SaaS guidance counselors

Leave a Reply

Your email address will not be published. Required fields are marked *