A small portion of the trading activity on the stock exchanges comes from traders who want to profit from trading faster than others.
These market players position their servers within the exchange building through a practice called co-location. This reduces the time it takes for their orders to reach the exchange, allowing them to take advantage of the small benefit they gain from the fractions of a second they save.
Co-location has increasingly contributed to trade fair activity in recent years. It has shown an increasing trend in recent periods for which data are available. But it is now showing a decline for
First print: April 29, 2024 | 11:51 PM IST