We examine the execution quality of electronic stock traders who are geographically dispersed
throughout the U.S. Traders who are located near market central computers in the New York City area
experience faster order execution. Moreover, the time to execute orders rises as a trader’s actual
distance (mileage) to NYC widens. In electronic market settings, data transfer limitations and
transmission slowdowns result in geographically dispersed electronic traders having different access to
trading speed. We find that speed advantaged traders experience lower transaction costs and engage in
strategies that are more conducive to speed.
展开
下载论文 
复制链接
新浪微博
微信扫一扫