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New Trans-Atlantic Cable Could Make Trading Even Faster

A new trans-Atlantic cable would speed up financial communications.

Although automated trading is a contentious topic in the financial and regulatory world, it is the norm, meaning firms that have adopted algorithms and software risk being left behind.

Investors involved in high-speed trading may be able to beat out the competition, once the installation of a new transatlantic, fiberoptic cable is completed, Popular Mechanic reports. The line will run from London to New York and will allow hedge-fund traders and money marketers to get details on financial transactions faster than through other forms of communication.

The source notes that even a few milliseconds of headway on other firms can benefit traders, since orders are executed in the order they come in. Software that automates the process of making domestic and international financial trades, combined with algorithms that facilitate high-frequency trading has made the financial industry even more fast paced.

"If you are trading in one market, you want to be monitoring what’s happening in the other markets,"  Bjarni Thorvardson, CEO of the company laying the cable, told the magazine. "And if you know that five milliseconds fast or sooner than somebody else, you have a big leg up."

The cable will run 3,741 miles from New York City to Halifax to London, and is faster because it is 310 miles shorter the other lines, the news source explains.