Fibre optics raise concentration of forex trading - paper
Faster technology weakened effect of spatial differences, researchers say
The use of submarine fibre optic cables helped to greatly increase the concentration of foreign exchange trading in a few major centres, a paper published recently by the European Central Bank argues.
In Cables, sharks and servers: technology and the geography of the foreign exchange market, Barry Eichengreen, Romain Lafarguette and Arnaud Mehl look at the impact of countries' connections to submarine fibre optic cables.
The cables provided greater bandwidth and lower latency to forex trading
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