Pioneering research at the intersection of physics, finance, and technology
The Space Finance Institute exists to illuminate the fundamental physical constraints that shape modern financial markets. In an era where trading happens at near-light speeds and global markets are interconnected like never before, understanding the role of physics in finance is no longer optional—it's essential.
We believe that by rigorously examining how physical laws limit and shape market structure, we can contribute to fairer, more efficient, and better-designed financial systems. Our work bridges the gap between theoretical physics, financial economics, and practical market design.
"The speed of light is not just a cosmic speed limit—it's a fundamental constraint on how quickly information can travel between markets, creating unavoidable asymmetries that shape the very structure of global finance."— Space Finance Institute Research Philosophy
We pursue academically rigorous research that meets the highest standards of scientific inquiry. Our work is grounded in both theoretical physics and empirical financial data.
The most important questions exist at disciplinary boundaries. We bring together physics, computer science, economics, and finance to tackle complex problems.
While our research is fundamental in nature, we're committed to translating insights into practical applications for market design, regulation, and technology.
We believe in open exchange of ideas with researchers, practitioners, regulators, and the public. Scientific progress requires collaboration and constructive debate.
Understanding physical constraints helps us identify what's fundamentally achievable versus what represents unfair advantage in market access and operation.
We focus on fundamental questions whose answers will remain relevant as technology evolves, providing enduring insights into market structure.
The Space Finance Institute takes a unique multidisciplinary approach to understanding financial markets through the lens of fundamental physics:
We start with physical first principles—the speed of light, causality, and information theory— and examine their implications for market structure.
Theoretical insights must be validated against real market data. We analyze actual trading patterns, latencies, and market microstructure.
Our models and analyses employ rigorous mathematical frameworks, ensuring our conclusions are logically sound and precisely stated.
We examine current and emerging technologies—from fiber optics to microwave networks to potential quantum systems—and their market implications.
We consider how physical constraints should inform regulatory frameworks, market design rules, and fairness standards.
We think ahead to next-generation market infrastructure, considering how design choices today will affect markets for decades to come.
As financial markets have evolved from trading floors to electronic networks spanning the globe, the role of physics has become increasingly central to market dynamics:
Modern markets operate at timescales where the speed of light becomes a limiting factor. A signal traveling from New York to London takes approximately 67 milliseconds at the speed of light through fiber optic cables. This creates fundamental, unavoidable latency that cannot be engineered away— only minimized through expensive infrastructure.
Physical distance creates persistent arbitrage opportunities that are impossible to eliminate. Traders closer to exchanges have informational advantages that are grounded in physics, not just technology or skill.
Understanding what advantages are rooted in physics versus human choice is crucial for designing fair markets. If certain advantages are physically unavoidable, regulators must consider different approaches than if they're purely technological.
Billions of dollars are spent on reducing latency in financial systems. Understanding the physical limits helps market participants, regulators, and technology providers make informed decisions about infrastructure investment.
As markets continue to evolve—potentially incorporating quantum technologies, new network architectures, or novel trading mechanisms—physics-based analysis provides crucial insights for sustainable design.
The Space Finance Institute is committed to expanding the frontier of knowledge at the intersection of physics and finance. Our ongoing work explores:
Comprehensive analysis of how the speed of light creates fundamental limits on market synchronization, arbitrage, and information propagation.
Investigating potential applications of quantum communication and computation in financial markets, and their implications for market structure.
Developing frameworks for market infrastructure that explicitly accounts for physical constraints while maximizing fairness and efficiency.