The heat wave sweeping New York is slowing down the fastest traders on Wall Street
AP Photo/Julie Jacobson
- Scorching temperatures in New York are weighing on US stock trading, according to Bloomberg.
- Information is taking 8 microseconds longer to transmit from Nasdaq to NYSE, the report said.
The heat wave sweeping the Northeast is impacting Wall Street's fastest traders, according to a Bloomberg News report.
There's an excessive heat warning in effect across the Tri-state area with temperatures over 90 degrees Fahrenheit. The unusually hot weather is slowing down trading, as reported by Bloomberg's Nick Baker.
In a note to clients Tuesday, Nasdaq said it was taking eight microseconds longer for information to be transmitted from the exchange's data center in New Jersey to the one operated by the New York Stock Exchange. That might not sounds like that much of a delay, but in the world of high-speed trading computers can execute hundreds of trades in the time it takes a human to blink an eye.
So-called high-frequency trading firms, which were made famous by Michael Lewis' book 'Flash Boys', have been vilified on some corners of Wall Street, and have been accused of using their speed to front run large orders from huge institutions like pension funds.
Proponents argue such trading shops provide liquidity and help tighten spreads between folks looking to sell stock and buy stock.
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