Cutting-edge Innovations in HFT

The debarkation of HFTs and cloud computing are two contemporary incidents. With bustling
advancement in computing hardware and software, these two anomalies unconditionally turn to be
tightly related as the way market is changing rapidly. In digital computing system, rules can be
expressed by algorithms and data structure. The essences to be on call to swap, no matter when,
requires allocating, handling, inspecting and finishing systems. This is cinched by clustering it to the
data centers (Rosa, 2014). Until recently, the cloud looked, as if a less-than-ideal fit for HFT
applications, which require remodeling, advanced range of capabilities, high execution and
low latency. Top functions in HFT operations are robotic supported by programmed algos for reacting
to real-time market events. Cloud computing ascribes a unique opportunity in this regard. Cloud
computing extends the speed, availability and data processing control for machine-controlled
operations (Farka & DaSilva, 2011). The major issue for today’s growing number of HFT traders is
that they need access to multiple execution venues, market big data and low latency market data and
news feeds (Yoo et al., 2013). The marriage between the cloud computing and several exchanges at
the exchange can permeate the whole supply chain. Algorithmically arbitrated ultra-fast trades
founded on real-time price shifts in micro seconds are going to move to the cloud (Cheung & Roca,
2013).