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Nasdaq will end an undisclosed high-speed trading service it offered to a handful of its client trading firms after coming under scrutiny from US regulators.
The US stock exchange had been marketing to selected customers a new fibre optic cable that cuts the time to execute trades on its market by up to a third, drawing the ire of competitors who were unaware of the unpublicised service.
The dispute underscores how the technological arms race that underpins modern day trading is heating up again as cheaper and more efficient equipment becomes available.
In February US telecoms group McKay Brothers complained to the US stock market regulator that Nasdaq was “covertly” offering some customers access to hollow-core fibre optic cables, which can carry trading data far quicker than the standard solid-core…
