These servers are the heart of any exchange’s trading system. Brokers always try to have the fastest access to trading engines so that they can have the price information ahead of the competition, execute order before other brokers can do so and profit from the same. Hence, they try to place their own own servers closest to the exchange’s trading engines. Even a time difference of one thousandth of a second can lead to profit or loss worth crores of rupees.
from Times of India http://bit.ly/2GQABV7
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