High-Frequency Trading Is Newest Battleground in Crypto Exchange Race

The Takeaway

• High-frequency trading (HFT), a longtime and controversial practice in traditional markets, is becoming commonplace in crypto, too.
• Placing trading servers physically close to exchanges’ matching engines can win an edge on speed. This helps HFT firms make large profits in the legacy markets.
• Crypto exchanges such as ErisX, Huobi and Gemini are trying to attract large algorithmic traders with colocation offers.
• Demand for the service is high, but its benefits are a matter of debate, due to the structure of the crypto market

 

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