Summary Of ' We Meet Dan Spivey

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In this chapter, we meet Dan Spivey. Dan is a forty something former trader who stumbled upon the realization that his phone line had as much or more to do with his stock trading as his experience and investment information did. Like most traders, Spivey knew that there were differences in market prices across the various exchanges, particularly those between the Chicago and New York, several times a day with thousands of stocks. If one was fast enough, one could take advantagethe low price of one market before it caught up to the rest of the stock market’s higher price. It was not necessarily illegal, but it was skimming the customer. Ofthat time. He mapped out a possible straight line from Chicago to New York in which fiber optic cables could be run to greatly shorten the signal delay between the two. He caught the interest of investors like the head of Netscape to make the line a reality and after many complications, went on line in 2010. The start up cost to join the line was 10.6 million and only 200 of the 400 brokers in Wall Street would have room on the line. Brad Katsuyama is a stockbroker for Royal Bank of Canada. He, like others, notices a huge change in the stock market after the sudden introduction of electronic trading at his company in 2006. He tries to buy shares in a stock at one price, only to see the option disappear as soon as he hits execute. The shares can now be bought from someone else at a higher rate. This happens every time he hits the execute

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