Speed II: Have We Reached A Tipping Point?

The financial markets, above all other industries, have monetized speed – so much so that a millisecond advantage in this industry comes with an estimated value. What other industry, outside of perhaps semi-conductors, can value time in such fine increments? Financial markets not only have pushed but also financed the transition from horse to carrier pigeon, telegraph, phone, fiber optics, microwave and, now, laser. 

This note looks at the concepts of speed, latency and time to provide fresh insight into how to think about trading in an increasingly speed- and time/latency-dependent world.