Ahem... What will happen if we take down a tower ? Or cause interference to the straight line between uk and germany ?
If anyone has any idea (a fault-tolerant design maybe) or impacts on the financial markets ?
HFT in the Banana Land
41–50 of 59 posts
Re: HFT in the Banana Land
#42How long before activists start flying large kites directly in front of these structures?
Re: HFT in the Banana Land
#43Ahem... What will happen if we take down a tower ? Or cause interference to the straight line between uk and germany ? If anyone has any idea (a fault-tolerant design maybe) or impacts on the financial markets ?
ten years ago, i'd say not a whole lot -- there were still competitors providing liquidity who weren't speedcentric. today, however, i think market liquidity would disappear. that's not to say all hell would break loose, but there would probably be wild price swings for an afternoon or two.
Re: HFT in the Banana Land
#44Ahem... What will happen if we take down a tower ? Or cause interference to the straight line between uk and germany ? If anyone has any idea (a fault-tolerant design maybe) or impacts on the financial markets ?
ten years ago, i'd say not a whole lot -- there were still competitors providing liquidity who weren't speedcentric. today, however, i think market liquidity would disappear. that's not to say all hell would break loose, but there would probably be wild price swings for an afternoon or two.
Market liquidity would not "disappear". Liquidity providers do not rely on their microwave lines quite that much (yet). In the case of a microwave failure (more common than you'd think), all one does is failover to physical and keep on pricing.
Worst case is widening your quotes while you reassess your view of the world (the book), but never withdrawing completely from the market.
Re: HFT in the Banana Land
#45Ahem... What will happen if we take down a tower ? Or cause interference to the straight line between uk and germany ? If anyone has any idea (a fault-tolerant design maybe) or impacts on the financial markets ?
You'd hardly notice. The routes also exist via physical links . Prices on the exchanges may get worse for a while...
Re: HFT in the Banana Land
#46Ahem... What will happen if we take down a tower ? Or cause interference to the straight line between uk and germany ? If anyone has any idea (a fault-tolerant design maybe) or impacts on the financial markets ?
You'd hardly notice. The routes also exist via physical links . Prices on the exchanges may get worse for a while...
> Prices on the exchanges may get worse for a while...
What time scale are we talking about? (ns, μs, ms or even several minutes ?)
Re: HFT in the Banana Land
#47Earlier quoted context omitted.
You'd hardly notice. The routes also exist via physical links . Prices on the exchanges may get worse for a while...
> Prices on the exchanges may get worse for a while... What time scale are we talking about? (ns, μs, ms or even several minutes ?)
The prices will be worse until the higher speed link problem is resolved. That speed advantage allows the HFT firms to have less risk, that less risk gets translated into lower spreads (ie better prices) on the exchange.
Conversely, the slower links cause the firms to take on more risk, for which they need to make more money, that happens in the form of increased spreads.
Re: HFT in the Banana Land
#48Earlier quoted context omitted.
You'd hardly notice. The routes also exist via physical links . Prices on the exchanges may get worse for a while...
> Prices on the exchanges may get worse for a while... What time scale are we talking about? (ns, μs, ms or even several minutes ?)
μs or ms. As I mention below, there may be a little delay as people failover and reassess their view of the book, but that's all.
Re: HFT in the Banana Land
#49"inhabitants of the Western world need to realize that the tallest structures they can see in the landscape are the face of what may be a new kind of God: finance." Oh come on, so much drama for a slick lean tower in sparsely populated land, barely visible to anyone but local fishermen. Compare it to, say, this: https://en.wikipedia.org/wiki/Duga_radar This is a very prominent military installation that spoiled short…
The Problem is that some of these people live there becausw they like the view of the nature. Uninterupted by some modern skyscrapers. I prefer to live in a more rural area. I accept wind turbines, because they are a nesessery if you don't won't depend on coal and nuclear energy. Now these people get some building that doesn't benefit them and isn't strictly nesessery. With the Duga Radar you could argue it's some co…
You could also argue that losing out economically has significant impact on a nation and its people. While national financial institutions are rethinking the focus on finance as a focus of the economy, it's not by happenstance London, New York, Frankfurt, Tokyo, HK, etc. pursued being financial hubs.
They were keystones in their respective economies and thus just as integral to national physical defense.
Re: HFT in the Banana Land
#50"inhabitants of the Western world need to realize that the tallest structures they can see in the landscape are the face of what may be a new kind of God: finance." Oh come on, so much drama for a slick lean tower in sparsely populated land, barely visible to anyone but local fishermen. Compare it to, say, this: https://en.wikipedia.org/wiki/Duga_radar This is a very prominent military installation that spoiled short…
> If the choice is between Ares and Hermes, I am choosing Hermes.
Well put.