Stock price is subject to constant change, leading to arbitrage opportunities that HFT algorithms seek to quickly capitalize on via speed of execution. Yet, speed is also about link delay and a subset of these high-throughput satcom initiatives will be able to offer lower latency than fiber across long distances, a situation that could foster wider interest in satellite constellations by financial players.Ī large portion of trading today is happening between computer servers with sophisticated algorithms that trade hundreds of thousands of times a second, seeking to repeatedly make small amounts of profits over tiny periods of time. Planned LEO and VLEO (Very Low Earth Orbit) satellite constellations cannot provision data rates as high as fiber cables when connecting major cities. “Remember that time is money” wrote Benjamin Franklin in a 1748 book. The concept of opportunity cost believed to trace back to ancient Greek philosophers but popularized by one of the founding fathers of the United States, may nowhere be more critical to business than in the realms of high-frequency trading (HFT).
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