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Found Something What Do I Do

Group,

I started looking at building my own algorithm, researching the profession of high frequency trading. In doing so I am learning how important fractions of seconds are for larger institutions. In reaching out to my network I learned that I have a friend that has ties to those who own the backbone of the internet and he has access to a building that sits on it. It is called the super-net or something. The people that use this thing are big, like infrastructure for Wal-Mart type big. They talk in Gigs of download speed. Most of this I am not familiar with because I am new, but I am reading that large institutions are spending $100M+ to setup their infrastructure for high frequency trading near to or possibly tap right into the backbone of the internet. My past business associate told me, I could lease out space in part of the building.

Question
Should I lease the space and then sublet it to other high frequency trading organizations that do not want to invest in the $100M+ in upfront capital - not because they can't but because of the time value of money (setting up shop would take 1-2 years)? My algorithms are young and I would not use the space until I had faith in their ability. The space will be leased out to a multi-billion dollar company in a few months if I do not want to lease it. The company that is leasing the building doesn't need all the space but is tying it up for location sake and future expansion - my associate could lease part of the excess not currently needed to me for the same price.

This fell into my lap and I am not sure if it is something that I should pay attention to or let it go. I do know there are only a few locations like this in the world and most are not publicly known. In this place are guys waling around with guns and guard dogs, etc... Its like a james bond movie.

Thoughts?

Walk away - do something??

2 responses

Do you know of any HFT that want to be there? I would be surprised. It was my impression they like to be close to the matching engines in Cartaret, Chicago etc, not so much the Internet NOCs.

Nice - thanks for the response. Any information is helpful. I think that this is going to be a distraction. I need to focus more on my algos