
Is high-frequency trading good or bad for liquidity? Rain provides the answer - obi1kenobi
http://blogs.wsj.com/moneybeat/2016/10/21/raining-in-high-frequency-traders/
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obi1kenobi
This is a brilliantly simple experiment:

\- most HFT companies use microwave transmitters because they are faster than
fiber;

\- microwaves are disrupted by heavy rain and snow, so they fall back to
fiber;

\- one can observe bid-ask spreads when it rains to see how liquidity is
affected.

Conclusion: spreads narrow, and liquidity is improved when the fastest HFT
traders are slowed down.

