11–20 of 77 posts
why would a radiowave that is reflected off the atmosphere (and therefore taking the longer route) be faster than a direct fibre cable?
Light doesn’t go at light speed through optical fiber.
Microsoft bought a hollow optical fiber company for a reason.
Other than seemingly perverse incentives, is there a good reason not to quantize trading time?
Other than seemingly perverse incentives, is there a good reason not to quantize trading time?
I've argued in the past that we should have batch settlements every 30 seconds, instead of in real time. We don't really need microsecond based skimming/front running.
Other than seemingly perverse incentives, is there a good reason not to quantize trading time?
I've argued in the past that we should have batch settlements every 30 seconds, instead of in real time. We don't really need microsecond based skimming/front running.
I'm with you. Every 30 seconds. Cap the power of connection speed in trading. Trading should be based on the value of the item being traded, not on how short the fiber run is.
Other than seemingly perverse incentives, is there a good reason not to quantize trading time?
I've argued in the past that we should have batch settlements every 30 seconds, instead of in real time. We don't really need microsecond based skimming/front running.
We need to kill "front running" as a criticism of low-latency algo trding with fire. It's garbage.
Front running is highly illegal and is where a broker knows a client is going to do a big trade due to inside information and trades on the account of others (themselves, typically) to exploit that inside information. It's a straight up cheat.
Inferring from market data alone which way a price will move is legal, honest, been attempted since forever and absolutely fine. Also very, very difficult. Anyone who can do it makes the market more efficient, reduces the money available by doing it (which goes into investors pockets through tighter spreads) and really earns their money. You don't have to like them if you don't want to but it's worlds apart from front running using inside information.
Where did algo trading profit come from? Won by being more competitive from brokers profit with a good chunk of that broker profit going to investors. Spreads are tighter.
Where are the clients' yachts? Well tech did something about the some of the broker ripoffs earning their yachts - which puts money in your pocket.
Earlier quoted context omitted.
I've argued in the past that we should have batch settlements every 30 seconds, instead of in real time. We don't really need microsecond based skimming/front running.
so now the race is to get the order in (or out) @ 29.999999985 seconds or 15nS before the batch deadline. Interesting twist on the game. Unlikely to change who wins it, could it be worse for retail punters? We need to kill "front running" as a criticism of low-latency algo trding with fire. It's garbage. Front running is highly illegal and is where a broker knows a client is going to do a big trade due to inside info…
Other than seemingly perverse incentives, is there a good reason not to quantize trading time?
If you have a bunch of orders at the same price on the same side, and an order comes in from the other side that crosses those orders (or there is an auction and there are orders on the other side which cross), how do you decide which of the resting orders at the same price should be filled first?
The most common way is that the first order to arrive at the exchange at that price gets filled first, and for that reason being fast is inherently advantageous.
Earlier quoted context omitted.
so now the race is to get the order in (or out) @ 29.999999985 seconds or 15nS before the batch deadline. Interesting twist on the game. Unlikely to change who wins it, could it be worse for retail punters? We need to kill "front running" as a criticism of low-latency algo trding with fire. It's garbage. Front running is highly illegal and is where a broker knows a client is going to do a big trade due to inside info…
You could randomize the batching deadline.