Barbarians at the Gateways: High-frequency Trading and Exchange Technology
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Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#2This is a well informed and put together article. Up to date technically and the Author knows what he is talking about. As a former HF trader I endorse it, great piece.
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#3A great overview of the space. The numbers and techniques are realistic and the article refrains from the moral debate (which you can find elsewhere...)
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#4This is a well informed and put together article. Up to date technically and the Author knows what he is talking about. As a former HF trader I endorse it, great piece.
Out of curiosity. Why "Former"?
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#5[deleted]
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#6> Some facilities such as the Mahwah, New Jersey, NYSE (New York Stock Exchange) data center have rolls of fiber so that every cage has exactly the same length of fiber running to the exchange cages.3
I remember the first time someone told me that. I thought they were kidding. Then I actually got to see the data center.
The exchanges, and HFT firms, take this very seriously. The speed at which they execute is just unbelievable.
The amount of technology and networking stack knowledge is just mind blowing.
I remember tuning my linux distribution's networking stack to gain an advantage only to find out that everyone had moved onto using asic's and infiniband hardware.
I continue to be amazed at the sheer talent and brain power that goes into this field:)
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#7> Some facilities such as the Mahwah, New Jersey, NYSE (New York Stock Exchange) data center have rolls of fiber so that every cage has exactly the same length of fiber running to the exchange cages.3 I remember the first time someone told me that. I thought they were kidding. Then I actually got to see the data center. The exchanges, and HFT firms, take this very seriously. The speed at which they execute is just un…
Kernel bypass is also common. Having the OS manage your networking stack adds too much latency.
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#8I'm wondering if someone here can explain to me the value in HFT for anyone other than the people doing the trading. I went to Wharton and some old friends are in HFT and the one thing they all say, and I hear repeated everywhere, is that they provide liquidity to the market. Something about it just doesn't ring true to me. If it is in fact true I'd love to hear an explanation.
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#9> Some facilities such as the Mahwah, New Jersey, NYSE (New York Stock Exchange) data center have rolls of fiber so that every cage has exactly the same length of fiber running to the exchange cages.3 I remember the first time someone told me that. I thought they were kidding. Then I actually got to see the data center. The exchanges, and HFT firms, take this very seriously. The speed at which they execute is just un…
I hope "amazed" is just poor wording.
Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology
#10I'm wondering if someone here can explain to me the value in HFT for anyone other than the people doing the trading. I went to Wharton and some old friends are in HFT and the one thing they all say, and I hear repeated everywhere, is that they provide liquidity to the market. Something about it just doesn't ring true to me. If it is in fact true I'd love to hear an explanation.
Liquidity has certainly gone up.
Also, it is hard to prove a causal relationship, but with the rise of electronic trading and HFT, price spreads and fees have come down.
I can't prove it, but I believe that insider trading is also much less rampant in modern electronic systems than it was in the older pit based markets.