A small share of trading activity on the stock exchanges comes from traders who aim to profit from trading faster than others.
These market players position their servers within the stock exchange premises through a practice called co-location. This reduces the time required for their orders to reach the exchange, thus enabling them to capatilise on the slight advantage gained from the fractions of a second they save.
Co-location has increasingly contributed to stock exchange activity in recent years. It showed a rising trend in the recent periods for which data is available. But it now shows a decline for