The Economics of Time

From the BBC’s article “When algorithms control the world” (Aug 22, 2011):

Spread Networks has been building one such fibre-optic connection, shaving three microseconds off the 825-mile (1327km) trading journey between Chicago and New York.

Meanwhile, a transatlantic fibre optic link between Nova Scotia in Canada and Somerset in the UK is being built primarily to serve the needs of algorithmic traders and will send shares from London to New York and back in 60 milliseconds.

“We are running through the United States with dynamite and rock saws so an algorithm can close the deal three microseconds faster, all for a communications system that no humans will ever see,” said Mr Slavin.

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