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Earlier quoted context omitted.
vanilla options (edit: pricing model) were invented by LTCM and they blew up on degenerate bets too looks like it just comes with the predisposition
I don’t think vanilla options were invented by LTCM. But the pricing model and thereafter the popularity was.
Slightly on topic, but could Elon turn starlink into a giant arbitrage opportunity? Once satellite - satellite laser links are up, it could be the quickest link between say NYC and Tokyo
The Earth is concave. Don't transpacific cables travel less distance?
Also, light in fiber moves significantly slower than light in a vacuum (or even air). HFT has been utilizing that fact for a while now.
The distance in altitude does increase the length, but not by enough to negate the effect of the faster speed.
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
Lots of things dont create economic value but that doesnt make them bad. Why so you find it interesting?
I don't think there's a reasonable way to stamp it out, though.. I guess if IEX's anti-HFT strategies were more ubiquitous it'd transform the HFT industry and maybe calm it down a little?
Earlier quoted context omitted.
The Earth is concave. Don't transpacific cables travel less distance?
Yeah I'm pretty sure cables will always beat satellites over the same distance. One interesting idea I heard was to string stationary drones that would relay microwaves across the ocean, similar to what was done with the relay towers between Chicago and New York.
You need to make up for the extra ~200 miles going up and down, as well as the extra curvature of the satellites orbital shell vs the ground. But, it is doable, assuming you can relay the signal fast enough from satellite to satellite. Fiber optics needs to also be boosted on long routes, I'm not sure how that affects latency. But at the very least, speed of light up/over/down is faster than .8C for 7000 miles around the earth
It seems like the information being disseminated by the article is just the mapping between the name and the concept, since every participant already knows that they want to be at the front of big levels and can take from the orders behind them if they don't like the fill.
Slightly on topic, but could Elon turn starlink into a giant arbitrage opportunity? Once satellite - satellite laser links are up, it could be the quickest link between say NYC and Tokyo
The Earth is concave. Don't transpacific cables travel less distance?
Slightly on topic, but could Elon turn starlink into a giant arbitrage opportunity? Once satellite - satellite laser links are up, it could be the quickest link between say NYC and Tokyo
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
Lots of things dont create economic value but that doesnt make them bad. Why so you find it interesting?
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
Lots of things dont create economic value but that doesnt make them bad. Why so you find it interesting?
Frequent batch auctions are one possible solution to this problem[0] that I see as quite promising. The problem of couse is that exchanges profit from the HFT extraction via fees and the prestige generated by reporting higher trading volume.
Any real solution needs to solve both the micro-structure and the macro-structure of markets and make exchanges a publicly or collectively owned (or at least incentivised) utility.
[0] https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2388265
I find it interesting how HFT apparently creates no economic value whatsoever. The value is siphoned off more traditional market trades.
Lots of things dont create economic value but that doesnt make them bad. Why so you find it interesting?