Research preview

Protesters in Washington, D.C. have turned a diplomatic visit into a flashpoint, reminding traders that political risk can surface suddenly. While headlines focus on the symbolism, the underlying market mechanics – especially the relentless speed competition among high‑frequency firms – continue to shape daily price formation. Understanding the scale and cost of latency arbitrage helps quantitative teams assess risk, allocate capital, and design robust strategies in an environment where both politics and microstructure can move markets in microseconds. The Hidden Battlefield: Latency‑Arbitrage Races Message‑level data from equity exchanges reveal a constant series of “races” in which firms try to capture fleeting price differences across venues....