Can This App Really Thwart High-Speed Traders?

The video discusses Renaissance's trading system, which uses synchronized servers to prevent high-frequency traders from exploiting trades. The system is connected to an atomic clock, allowing trades to execute in a billionth of a second. The discussion covers arbitrage opportunities, the patent process for HFT technologies, and the costs associated with server colocation. Renaissance aims to protect against predatory HFT practices while potentially licensing their technology to other firms.

What is the primary purpose of Renaissance's central server in their trading system?

• To increase the speed of trades

• To prevent trades from being executed

• To synchronize trades across multiple exchanges

• To execute trades directly on exchanges

How does Renaissance ensure that their trades are not exposed to high-frequency traders?

• By using a slower exchange

• By trading only on one exchange

• By executing trades at different times

• By synchronizing trades to reach all exchanges simultaneously

What advantage does Renaissance gain by synchronizing their trades using an atomic clock?

• Access to the best prices and liquidity

• Faster trade execution

• Reduced server costs

• Increased trade volume

What is a potential benefit for Renaissance in obtaining a patent for their trading technology?

• They can prevent others from trading

• They can increase their trade speed

• They can license the technology to other firms

• They can reduce their trading costs

Why might exchanges charge high rents for server colocation?

• Because it is not necessary for trading

• Because it is a profitable business if necessary

• Because it reduces the speed of trades

• Because it increases the number of trades