RR Phantom
Location : Wasted Space Job/hobbies : Cayman Islands Actuary
| Subject: Some clown: Trading in one trillionths of a second is just sharemarket madness Sat Mar 19, 2011 4:26 am | |
| What's the right length of time to own a share? Ten years, perhaps. Five? Or maybe it depends on the company you invest in.
But seconds, or milliseconds, or even picoseconds? New trading technologies are making it possible to buy and sell shares in ever tinier fractions of time.
Trading in picoseconds is madness. It makes the sharemarket more volatile and less useful for companies to raise capital or for investors to earn returns.
In Britain this month, the technology company Corvil, which includes London Stock Exchange Group and Deutsche Boerse among its customers, created a stir by predicting that new frontiers in trading speeds were about to open up.
From trading in milliseconds, to microseconds, to nanoseconds, speeds are getting faster all the time. ''There are no technological limits preventing firms from trading in picoseconds,'' said Donal Byrne, chief executive officer of Corvil.
ANCAPS: ANARCHO-CAPITALISTS |
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