There was an interesting little story in today's ComputerWeekly that says that beginning today, those traders using algorithmic trading can slice off even more time in making trades on the London Stock Exchange (LSE).
By placing new trading servers next door to the LSE, trades can be completed in less than a millisecond. According to the story, it takes about one millisecond for every 200km traveled on fiber - or about takes 12.7 milliseconds to send a message from London to Frankfurt.
Investors want to complete trades as close to real time as possible because then they can buy shares at the price they want. In high volumes trading, even small price fluctuations can make a significant difference, according to another ComputerWeekly story.