Will the improved data latency affect market microstructure, such as bid‑ask spreads or order‑book depth?

The sub‑100 ms latency of NYSE Cloud Streaming will sharpen the timing of price‑formation signals for all market participants that tap the feed. Faster, more‑granular data narrows the window in which a “price‑informational advantage” can be extracted, so the classic latency‑race that widens bid‑ask spreads in highly‑active stocks is reduced. Market makers and high‑frequency firms will be able to update quotes and replenish depth a few dozen milliseconds sooner, which compresses spreads—especially on liquid, high‑turnover symbols—while still preserving enough depth to meet inventory‑risk limits. In less‑liquid stocks, the impact is muted; spreads remain driven by wider‑ticket size and lower order‑flow, but the overall order‑book will become slightly more responsive.

From a trading‑strategy perspective, the tighter spreads and modestly deeper near‑mid‑book depth create a short‑‑bias for spread‑capture strategies (e.g., market‑making, statistical‑arbitrage) and a long‑bias for momentum‑oriented scalpers who can now react to order‑flow imbalances more quickly. Practically, you can expect a modest reduction (5‑10 bps) in average spreads on the most actively traded NYSE‑ICE tickers and a modest increase in displayed depth at the top three price levels. Position‑sizing should be adjusted to the new “faster‑but‑still‑noisy” environment: tighten stop‑loss buffers on high‑liquidity stocks, and consider scaling back aggressive HFT‑type order‑placement on mid‑cap names where the latency gain is less pronounced. In short, the improved latency will modestly improve market microstructure—narrower spreads and a slightly more resilient order‑book—benefiting participants who can ingest the feed in real time.