They say we are now around 7.4 billion people on this planet, so now more than ever and for anything in the future, the words “First come first serve” matter.
The arbitrage opportunities have always been present in our financial markets as fungible assets trade in different venues.
I was once an arbitrage trader back in Mexico in 1992 when Telmex (TMX) was the most traded stock in the NYSE. We will have a Broker at the Mexican stock exchange and another one at the NYSE looking at that price all day. One price in USD and one in pesos with a third variable – the USD -PESO spot. You could hear the screams all over the trading floor when the price changed and an arbitrage opportunity arose.
How markets have changed in the terms of access, technology, and processing that today there is a server co-located at each exchange monitoring decimal changes and firing thousands of orders for arbitrage opportunities across all asset classes.
Latency has been a very discussed topic across our industry and it has changed the game several times.
The forex marketplace now has been evolving and latency matters more than ever. The challenge is very big as there is no central place for trading. Liquidity providers, ECNs, brokers, banks, and providers are preparing for the speed revolution.
Tradeview has invested a lot of resources into the Latency game in three different aspects.
- Servers and Location: The firm recently made changes in our servers’ location and characteristics, by being in proximity to the liquidity pools and having a central location that is strategic.
- Technology: The firm has revamped its Liquidity Connector and placed it accordingly to its strategic partners.
- Liquidity: The firm continuously works on improving the liquidity on its platform which ties into impacting the clients’ bottom line