The Shortwave Modernization Coalition wants to shave crucial milliseconds off the transmission of data. They need to do a better job explaining the benefits or explaining away the pitfalls.
Aaron Brown is a former head of financial market research at AQR Capital Management. He is also an active crypto investor, and has venture capital investments and advisory ties with crypto firms.
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Photographer: Nathan Laine/Bloomberg via Getty Images
A group of high-frequency traders, market makers and service providers calling themselves the Shortwave Modernization Coalition has asked the Federal Communications Commission for access to the shortwave band of the radio spectrum, seeking to shave crucial milliseconds off the transmission of data between major financial sectors.
I’m no expert in FCC deliberations, but reading the public comments shows a well-financed, professional application by the SCM. The band the SCM wants is currently used by amateur transmitters such as citizens-band radio and ham radio, and Federal agencies including the US Coast Guard and Federal Aviation Administration, as well as having a number of niche technical applications. While many current users don’t like the idea of letting high-frequency traders in their domain, they do not appear organized or well-financed, and their objections seem speculative compared to the slick professional study claiming HFTs will not interfere with current users. My amateur guess is this will pass FCC muster, which has led me to ponder the market implications.
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