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Maroc Maroc - WN.COM - Asia - 17/Jan 08:22

China orders trading servers out of exchanges

China’s market watchdog has ordered the removal of co-located trading servers from exchange data centres, a step that strikes at the core of high-frequency trading strategies by stripping away microsecond advantages and reshaping how orders reach the market. The directive, conveyed to brokerages and proprietary trading firms over the past week, requires firms to relocate servers that sit inside or adjacent to exchange facilities, a practice that has allowed algorithmic traders to exploit ultra-low latency connections. By mandating physical separation, regulators aim to level access speeds across participants and curb...

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