• trajekolus@piefed.social
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    13 days ago

    Does a stock exchange still have to be tied to a single physical location in the digital era? Perhaps it can be in both cities

    • boonhet@sopuli.xyz
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      13 days ago

      Proximity to the servers matters a lot for high frequency trading algorithms, to the point the big hft-using banks acquire space in the building next door to the NYSE. Milliseconds are an eternity to these guys.

      There needs to be a single source of truth so I’m assuming the servers are going to be in one location (with backups of course, but the primary system would have a singular location). Otherwise you could get discrepancies.

      This could then become a political issue - commercial real estate in the city where it will be built is going to shoot up in value. Which country do the extra euros flow into?