Home » Market Structure » Using Hammer of Thor to Capture Domestic Equity Order Flow

Using Hammer of Thor to Capture Domestic Equity Order Flow

Simone Foxman, The Atlantic, Who Would Stand Up to Wall Street’s Robot Armies? The ‘Navy SEALs’ of Finance, here.

The team at RBC Capital soon developed a solution—a new trading technology dubbed THOR. To prevent high-frequency firms from jumping ahead of their trades, they staggered the timing of their orders to different exchanges. An order sent to NYSE, the farthest exchange, would go out without a lag, but the same order to a nearer exchange like BATS would be timed to go out microseconds later, so that they would arrive at all the exchanges simultaneously. The technology,launched in January 2011 (paywall), effectively neutralized the HFTs’ faster wiring.

 

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