Cloud-Based High Frequency Trading

Abstract

The technology that service providers and market participants have embraced over the past 20 years has greatly influenced the structure and trading practices of capital markets. High-frequency trading systems require speed and processing power since they are designed to analyse trends in tick-by-tick financial data and inform buying and selling choices. They also need back-end systems to be highly available and scalable, which comes with a hefty price tag. This paper explores the question of whether cloud computing can give trading companies the flexibility they need to thrive in the long run.