Archive · 16 Dec 2025
High-speed traders feud over nanosecond advantage
Some super-fast trading companies are arguing with a big trading place called Eurex.
They are fighting over a trick that helps them make trades just a tiny bit faster—about 3.2 billionths of a second.
This trick involves sending useless data to keep their connection to Eurex ready, so they can react quicker when something important happens in the market.
One company, Mosaic, says this trick has made other companies a lot of money and that it's not fair.
Eurex says Mosaic's claims aren't true, but they are changing their system to stop this trick.
Even though this trick might stop soon, these companies will probably keep looking for other ways to be even faster.
High-frequency trading firms are disputing a technique to gain a 3.2 nanosecond speed advantage on Eurex.
Mosaic Finance claims rivals have made up to 600 million euros using this technique, which it calls 'corrupted speculative triggering.'
Eurex denies Mosaic's claims but is upgrading its system to curb the technique, set to take effect in April 2024.
The technique involves sending data preambles before knowing if a trade will be made, allowing for faster reaction times.
Other firms like Optiver and Emergent Trading also use similar techniques to gain a speed edge.
- Who
- High-frequency trading firms (Mosaic Finance, Optiver, Emergent Trading) and Eurex exchange
- What
- Dispute over a technique to gain a nanosecond speed advantage in trading
- When
- Ongoing, with Eurex's system upgrade scheduled for April 2024
- Where
- Eurex exchange in Frankfurt
- Why
- To gain a competitive edge in high-frequency trading by reacting faster to market information
- Trading Firms
- Mosaic Finance, Optiver, Emergent Trading
- Exchange
- Eurex (Frankfurt-based)
- Speed Advantage
- 3.2 nanoseconds
- Profit Estimate
- Up to 600 million euros ($700 million)
- Regulatory Status
- Gray area
- System Upgrade
- Eurex's upgrade to curb technique (April 2024)