Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
aminorex
on 02/05/2014, 17:22:43 UTC
I imagine that arbitrage should be particularly lucrative for exchange owners, especially if they collude.  

I have always assumed that BFX and stamp are arbing the book before it opens.  This is standard practice in U.S. equity markets:  Orders are first matched in-house, only then on exchange.  Most HFT is just the attempt to approximate this at the exchange tier, in a competitive, rather than a cooperative environment.  HFT arbs are present on all computerized markets that I am aware of.