>I wish one of these venues would have the conviction to put their whole kit in Dallas, or somewhere else in TX, but the industry would throw a fit because of what it would mean for the cost to access the market.
I realize this is probably super complex, but can you explain this more? Specifically, what does cost mean in this context? Is this in terms of listing on an exchange, or cost benefit such as being physically further away from NYSE or Nasdaq?
That would imply the decision making is happening outside of the locale. Why wouldn’t a firm just have their algorithms run loose on a machine as close to the source as possible?
Various financial products have value impact on other products around the world. In order to price orders appropriately in a given region you need the most up-to-date price information available, especially if you are looking to avoid being on the receiving end of arbitrage trades. The same is obviously true for the arbitrageurs.
I realize this is probably super complex, but can you explain this more? Specifically, what does cost mean in this context? Is this in terms of listing on an exchange, or cost benefit such as being physically further away from NYSE or Nasdaq?