Three milliseconds doesn’t seem long to most corporate workers. But to high-speed traders, this time can mean the difference between a good and a bad trade.
But to save those sensitive milliseconds, it’ll cost you.
How much? Thomas Philippon, associate professor of finance at New York University, estimates saving three milliseconds for high-frequency traders costs the U.S. $280 billion each year, reports The New York Times.
This is the equivalent to about 2% of the U.S. GDP, notes Philippon.