The Contrarian

“In the investment markets, what everyone knows is usually not worth knowing.”

High Frequency Manipulators Slowed By Heat Wave

The heat wave in the north east cost a critical delay in transmitting orders to the NYSE. Imagine!

According to the NASDAQ, it took about 8 microseconds longer to send information from NASDAQ’s facility in Carteret to the New York Stock Exchange data center in Mahwah.

It takes an extra 2 microseconds to send data to CBOE Global Markets Inc.’s exchange in Secaucus.

For HFTs, most of whom use microwaves to transmit orders, and some of which are using lasers, this is an eternity when it comes to front-running traditional order flow or creating mini momentum ignition events at just the right time.

Zerohedge writes: In other words, this is one of the few times when the HFT industry, looking at millions in foregone profits, can legitimately blame the weather on their woes.

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