Many who follow today's HFT debate may think "latency arbitrage" only came about recently bc of new technology & loopholes in 2009-era legislation. This could not be farther from the truth. Latency arbitrage has been around for over 200 years. Here are some examples:
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I say all this to give context. Before the game was fast horses & special telescopes. Today it's glass fiber optic cable and microwave towers. This kind of jockeying has always existed and likely will always exist.
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Across all high speed trading eras, one theme is clear: it's nearly impossible to stop smart, very rich traders from finding an edge, whether it be new technology or loopholes in existing laws.
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