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Actually I think the answer is no and I'll say why:Mathematics has never been a bottleneck since it is same for every financial institution and none can have "secret" mathematical methods bitting a competitor. Nor technology varies among institutions since all of them have access to high-tech perfectly executing the codes written by human. But those codes themselves are to be pushed towards bettering.We have the following situation now: All of the financial institutions have stuff aware of mathematics and programming. HFT itself is all about being before competitor. Let's take an "arbitrage hunting" when the programs are executing tens of thousands of transactions in nanoseconds as you mentioned. Those programs are running on similar platforms (why should we expect Citigroup to have better technology than JP Morgan or Goldman?! or vise) and where the only real competition everything boils down to is in CODES.So as I conclude the reason is not in technology or math, but in intellectual improvement. Computer scientists should strive to make their versions of algos better than others.
Actually I think the answer is no and I'll say why:
Mathematics has never been a bottleneck since it is same for every financial institution and none can have "secret" mathematical methods bitting a competitor. Nor technology varies among institutions since all of them have access to high-tech perfectly executing the codes written by human. But those codes themselves are to be pushed towards bettering.
We have the following situation now: All of the financial institutions have stuff aware of mathematics and programming. HFT itself is all about being before competitor. Let's take an "arbitrage hunting" when the programs are executing tens of thousands of transactions in nanoseconds as you mentioned. Those programs are running on similar platforms (why should we expect Citigroup to have better technology than JP Morgan or Goldman?! or vise) and where the only real competition everything boils down to is in CODES.
So as I conclude the reason is not in technology or math, but in intellectual improvement. Computer scientists should strive to make their versions of algos better than others.