Merrill Lynch
Trading in the blink of an eye
The outcome
Merrill Lynch´s super fast system knew the new bond prices quicker than anyone else. Each time the market changed, the computer would calculate the new prices then look on the electrical platform for banks still showing old prices. It would then trade on any old prices it saw, then hedge at the new price. This means that the profit was locked in.
All this now happens in a just a few milliseconds. Merrill Lynch made a lot of money. This just goes to show that it´s always worth pursuing a bright idea.
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