Wouldn't you just send whatever is needed to place the order?
Do all of the processing at the source and just send the final instruction?
(honest question I have no idea how this works)
Do all of the processing at the source and just send the final instruction?
(honest question I have no idea how this works)
Your trades only make money on the difference of the public information in London and what you get faster from Chicago. Therefore sending trade instructions isn't helpful as Chicago doesn't know London prices. But just giving the London algorithm that bit of inside can help a lot.
I assume trade strategies are mostly very simple as well. Basically just anticipating a change in price and quickly buying/selling to make some money off it.
N.B.: I only talk about Chicago->London here but given that Chicago hosts one of the largest Futures markets, I'd assume a lot is actually done in reverse. Using local prices from London of an underlying instrument (e.g. London stock market) to "predict" the value of the future traded in Chicago. You can make a lot of money if you know the price of the underlying instrument of a future before others do.
Edit: I meant the HF here to refer to the "high frequency" wavelengths in use in the link (in Ham parlance, HF and shortwave are roughly synonymous), but just realized it also could be "high frequency" as in the frequency of trades.