Earlier quoted context omitted.
> I am not sure this is a good prediction ... the shaving of milliseconds that has been pursued by HFT firms (and other such actors) has progressed to the point where they are measuring cable lengths inside the datacenter. You're conflating optimisation of latency within a colo - how quickly can you send an order in response to seeing an event on that exchange - with latency between colos - how quickly can you send a…
The thing is people have already built most of those microwave tower paths here on earth and in addition SpaceX probably isn't going to set it up as a mesh where intra-Starlink traffic stays goes directly. And even if they do you have to go up then across (probably in a zig zag) then back down which will always be higher latency than the point to point microwave distance.
I can assure you that lucrative paths like New York-London and New York-Tokyo have not been built yet. In fact, the vast majority of lucrative trading paths have not been built yet due to geographical restrictions. Yes, fiber optic links exist, but those only go up to 0.7c.
To a trading firm, the choice between a satellite link that does ~0.9c and a fiber optic link that does <0.7c is obvious.