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

Post by zouhair » Wed, Jul 13, 2016, 12:18 AM UTC

vecter wrote: post #71

hourislate wrote: post #68

Earlier quoted context omitted.

HFT systems scalp. They make their millions .001 at a time on front running and volume. A way to discourage this is by adding a very small fee to each trade. This eats/takes away their profits. The problem is their are too many folks making money that are connected to the right people in Government.There will always be talk about doing something about it but nothing will ever happen. The only positive outcome from al…

This comment is ignorant and wrong on every single point. As another person commented elsewhere, front running is a specific term with a clear definition and is illegal. HFT firms do not do front running.

Post by vorotato » Tue, Jul 19, 2016, 7:36 PM UTC

nycdatasci wrote: post #171

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…

They don't need to market; their returns speak for themselves. As obvious as the idea seems in hindsight, no one on the sell-side has a product like this right now. The closest thing is the Thor router, which is a crude attempt to accomplish the same feat because it doesn't address variation in latency. An algorithmic execution product like this would effectively end latency arbitrage, which is a source of RenTech's…