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What Is the Role of the Securities Information Processor (SIP) in Mitigating Latency Arbitrage in Traditional Markets?

The SIP provides a consolidated, standardized price feed (BBO) from all exchanges to reduce the informational advantage of HFTs using proprietary, faster data.
Greeks.Live14.11.25

What Is the Role of the Securities Information Processor (SIP) in Mitigating Latency Arbitrage in Traditional Markets?

The SIP is a consolidated data feed that collects and disseminates the best bid and offer (BBO) from all US securities exchanges. Its role is to provide a single, unified, and timely view of the market.

By standardizing the price feed, the SIP aims to reduce the informational advantage of HFTs who use proprietary, faster feeds, thereby mitigating latency arbitrage based on price differences between exchanges.

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