China pulled the plug on hft. Regulators told brokers to take out servers from exchange data centres… Shanghai, guangzhou, all hit. HFT desks built entire strategies on that proximity, now gone overnight.
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will retail traders benefit in china ?
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Hope it happens here too. Those parasites deserve it. 
And don’t bother giving me the liquidity spiel, you can create liquidity without front running everyone else’s trades. 
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That’s a massive shift, and it hits right at the core of how those desks operated. Proximity was the edge, not just a nice-to-have, so pulling servers out of exchange data centers basically wipes out latency-based strategies overnight. It also sends a clear message from regulators about the kind of market behavior they’re willing to tolerate. The interesting part will be what replaces it: more traditional market making, slower arbitrage, or firms just scaling back China exposure altogether.
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