Why the buy-side has been slow to reap the benefits of low latency.
the world of capital markets, the term low latency
isn’t new. When we think about exactly who is
benefiting from real-time updates, the sell-side investment
banks, brokerage firms who are selling assets, securities or
the latest derivative typically come to mind. We do not usually
associate the advising institutions directly focused on buying
- such as private equity firms or asset managers - with high
speed trading. Traditionally, the buy-side has adopted a more
cautious approach, focusing on how much return can be achieved
from the risk outlaid in the initial trade by going through the
normal sales trader route. But is this about to change? Are we
about to see asset management firms turning their attention to
a more automated route that requires ultra-low latency
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