Abstract
Abstract
The study analyzes the architecture and deployment of direct market access (DMA) solutions for automated trading of securities. It provides an overview of automated trading systems including: trading floor architecture, trading environment connectivity, and DMA solutions. Among a range of factors influencing operational capacities, round-trip latency has been recognized as the key quality differentiator of an automated trading floor. The study identifies potential opportunity costs due to latency levels as a major driver of technological progress in trading in highly liquid market conditions.
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