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Distributed exchange architecture is an interesting alternative:

https://ripple.com/blog/ripples-distributed-exchange-and-the...

When there's no central location towards which orders need to race to get time stamped, the whole low latency arms race seems unnecessary.

There's also no central place to co-locate servers.

Some of the existing traditional (centralized) exchanges are making 20-30%+ of their revenues from co-location and data fees. So they have little incentive to change. They cater to HFT because it's a big driver of their bottom line...



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