[Tech1] Day 4

[patheigham]

I’ve filmed in both the London and New York Stock Exchanges, and without doubt, the London Futures market
was appalling! A veritable bear-pit. And the shouty guys seemed to have no manners – all in their different coloured jackets,
like jockeys in their silks, trying to get to the post first!
Pat

Sent from Mail for Windows 10

From: ROGER BUNCE via Tech1
Sent: 22 March 2020 09:38
To: tech1 at tech-ops.co.uk
Subject: Re: [Tech1] Day 4

These days, I'm told, many trading decisions are made by computers. Whereas a Shouty Man throwing pieces of paper can make a trade in seconds, a computer can do so in nano-seconds. If the market starts to fall, the first person to sell makes the most money, the second is already making less. This means that you need to be as physically close to the trading floor (or wherever it is that the news first comes in) as possible, since even the length of the fibre-optic cable connecting your computer becomes critical. If it's a few metres longer than someone else's, you could be trading a nano-second too late (no I haven't checked the maths). So, those traders who say, "If you go for Brexit, I'll move to Frankfurt" (or wherever), won't do so. All the best pitches are already taken in Frankfurt. They'd find themselves further out, on longer cables.

Can't decide if this is a good thing or bad. If all those Bankers, who are constantly threatening to move overseas, had done so before the last banking collapse, they'd have wrecked someone else's economy, and not ours!

luv, Rog.






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