Rule Financial

21 Jul 2011

David Holcombe

I read with interest that Bank of America Merrill Lynch is launching an extremely low latency market access product.

If the times being quoted (sub-10 microsecond), are to be believed then this is setting an incredible standard. What is more alarming is that it seems to come with a set of risk controls to meet SEC standards. This is surely the next step in the race-to-the-top to capture client flows.

One may ask however, what does this look like if the suggested FTT (trading tax) is brought in, or the regulators put some sort of throttle on HFT? Does it become a pyrrhic victory?

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