Research preview

The Gulf Coast is bracing for the first hurricane of the year, a reminder that extreme events can move markets in seconds. While traders watch wind maps, a quieter but equally swift competition unfolds inside exchanges: latency‑arbitrage races that happen millions of times per day. Understanding the scale and economics of these micro‑races helps quantitative teams gauge hidden costs and design more resilient strategies. The Speed of the Race Latency‑arbitrage races are measured in microseconds, not minutes. Empirical work shows the modal race lasts between five and ten microseconds—roughly the time it takes a flash of light to travel a few kilometers....