Hedge Fund Wants to Use Atomic Clocks to Beat High-Speed Traders

Post by lordnacho » Mon, Jul 11, 2016, 10:03 AM UTC

Bromskloss wrote: post #129

lordnacho wrote: post #122

HFT / Fund guy here. This is marketing spiel. If you just want to trade on a bunch of exchanges so no information flows between them, you can easily (TM) write a program that either a) lines up the orders at each exchange to execute at a specific time or b) delays the orders from a central server by the line delay. So say NYC is 13ms from Chicago. You want to hit both at once. As long as you're not 13 ms late, nobody…

Does RenTech still have investors? I thought they worked for themselves now.

Post by amelius » Mon, Jul 11, 2016, 10:13 AM UTC

dakr wrote: post #127

Johnie wrote: post #76

This reminds me of how Google uses atomic clock and GPS for Spanner [1] Google: "“We can commit data at two different locations — say the West Coast [of the United States] and Europe — and still have some agreed upon ordering between them,” Fikes says, “So, if the West Coast write happens first and then the one in Europe happens, the whole system knows that — and there’s no possibility of them being viewed in a diffe…

It's also the method by which signals from radio telescopes thousands of miles apart have been correlated after the fact at a central location. This has been the case for a couple of decades now. For instance, at the VLBA: https://en.wikipedia.org/wiki/Very_Long_Baseline_Array

Post by oarsinsync » Mon, Jul 11, 2016, 10:23 AM UTC

Bromskloss wrote: post #123

Johnie wrote: post #88

Earlier quoted context omitted.

Except that the state of art in HFT is sub-microseconds "London-based trading technology company Fixnetix said Tuesday it has the world’s fastest trading application, a microchip that prepares a trade in 740 billionths of a second, or nanoseconds." (WSJ, 2011) http://blogs.wsj.com/marketbeat/2011/06/14/wall-streets-need... http://stackoverflow.com/questions/17256040/how-fast-is-stat...

Isn't the relevant delay rather that of a signal traveling from one exchange to another?

Post by joantune » Mon, Jul 11, 2016, 11:00 AM UTC

Johnie wrote: post #76

This reminds me of how Google uses atomic clock and GPS for Spanner [1] Google: "“We can commit data at two different locations — say the West Coast [of the United States] and Europe — and still have some agreed upon ordering between them,” Fikes says, “So, if the West Coast write happens first and then the one in Europe happens, the whole system knows that — and there’s no possibility of them being viewed in a diffe…

Post by kasey_junk » Mon, Jul 11, 2016, 11:08 AM UTC

eru wrote: post #102

kasey_junk wrote: post #55

Earlier quoted context omitted.

> Buy same security faster than rest of buy order can be processed. How? You can't because your competition is already resting orders there (from potentially weeks ago) and any order you put in there will be behind your competitors no matter how fast you are. What does happen is that you all are resting orders up and down the order book. When a big order takes out several levels of your orders, you race as fast as po…

Would eliminating the sub-penny rule remove the need to use this strategy? If there were basically an infinite number of points orders could be resting, you could just get in an epsilon above or below some other fund's order to get ahead in the queue?