Bytes to Bucks, Review of Technology in High-Speed Stock Markets
摘要
The landscape of financial markets is evolving every day. In this ever-evolving field, algorithm trading has emerged as a transformative force, it has reshaped the execution of transactions at the speed of microseconds. Modern markets require high-performance hardware, reconfigurable components like FPGAs and GPUs for parallel processing, and an optimized software architecture to handle an extremely large amount of transactional data within microseconds. This study delves into the pivotal role of technologies such as low latency, advanced algorithms, and efficient design patterns, examining advancements in hardware and software, network infrastructure, data processing capabilities, and trading algorithms. This study traces the progression from manual, non-digital trading methods to the integration of computer science in the mid-20th century, marking the conceptual beginnings of algorithmic trading to the modern high-speed markets executing millions of transactions per second. The paper concludes with various insights into future trends, highlighting the potential role of AI, ML, and blockchain to enhance decision-making capabilities and transparency among the participants, along with security, respectively. The adaptability to dynamic changes in technology, economics, and regulations is emphasized as crucial for sustained success in the dynamic field of low-latency algorithmic trading.