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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

#41
post #27

So much talent... focused on the buying and selling of securities , instead of creating new things that will make the world better in a directly measurable manner. Virtually all trading volume today consists of buying and selling old securities -- essentially, legal claims on existing assets. The sale of new securities issued to finance the creation of new products and services -- for example, a company selling new s…

Similar things can be said about military research, law firms, medical clinics (not medical research), advertisement firms and most other types of work.

Especially law firms.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#42

Earlier quoted context omitted.

I think I'm being trolled but I'll bite. What's wrong with the word amazed? If I said I worked at Google and I continue to be amazed at the tech behind how they served up ads would I still get the same remark from you? Maybe I could be doing more with my skill? I don't know but I really love the learning curve I'm on working with cutting edge technology and pushing the performance envelope.

I realized that there's a frequent uproar against HFT, so I assume people here are pretty tired of it and are not willing to discuss it/have their minds made up about it already. That's why I won't go rhetoric. edit: I guess, I did though. I can't help to reply to the adwords question - although you can argue that advertising/marketing is soulless, at least it creates real world value. Someone makes a product, someon…

Car insurance is a derivative.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#43

Earlier quoted context omitted.

I hope "amazed" is just poor wording.

I think I'm being trolled but I'll bite. What's wrong with the word amazed? If I said I worked at Google and I continue to be amazed at the tech behind how they served up ads would I still get the same remark from you? Maybe I could be doing more with my skill? I don't know but I really love the learning curve I'm on working with cutting edge technology and pushing the performance envelope.

>What's wrong with the word amazed?

Amazement (dopamine rushes) confuses us.

Biologically, we respond to amazement as part of the learning process. But all too often, we receive these dopamine rushes simply as a consequence of the amount of resources and effort someone (or a group) puts into something.

e.g. You can go to Las Vegas, see thousands of people running around topless in gorgeous outfits and be amazed, yet what's the actual value to you?

I see this ALL too often in art. People get "amazed" by things that require a great deal of effort/resources (look how many transistors in this CPU!), but this temporary narcosis blinds us to evaluating /whether it's a good idea/. So many art projects are simply the result of an ordinary person commanding extraordinary resources from a corporate entity to construct a large number of instances of a single, mundane object or a single, large-scale version of the object. In these cases, the art is not in the sculpture, but in the conning to get the resources. I see budding artists respond to this amazement and trying to get huge funding.

Internet bloggers (Cory Doctorow comes to mind) abuse the word "amaze" all the time. I just checked boingboing.net right now and saw amazing used to describe wallpaper (no dude, this is /natural history/ wallpaper).

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#44

Earlier quoted context omitted.

I think I'm being trolled but I'll bite. What's wrong with the word amazed? If I said I worked at Google and I continue to be amazed at the tech behind how they served up ads would I still get the same remark from you? Maybe I could be doing more with my skill? I don't know but I really love the learning curve I'm on working with cutting edge technology and pushing the performance envelope.

I realized that there's a frequent uproar against HFT, so I assume people here are pretty tired of it and are not willing to discuss it/have their minds made up about it already. That's why I won't go rhetoric. edit: I guess, I did though. I can't help to reply to the adwords question - although you can argue that advertising/marketing is soulless, at least it creates real world value. Someone makes a product, someon…

He wasn't admiring the economic situation, he was admiring some truly amazing high-end computer networking.

If HFT produces nothing else (and I generally agree with your economic view of it), at least it'll have financed the next generation of low-latency networking gear.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#45
post #22

""It's legalized front-running. I think it is basically evil and I don't think it should have ever been allowed to reach the size that it did," he said. "Why should all of us pay a little group of people to engage in legalized front-running of our orders?"" Charlie Munger, http://www.cnbc.com/id/100705820

What's the difference between HFT and traditional Human Market Makers?

May I suggest that Electronic trading and HFT have made it possible for a few people to do the work of thousands. This has brought down the cost of trading.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#46
post #27

So much talent... focused on the buying and selling of securities , instead of creating new things that will make the world better in a directly measurable manner. Virtually all trading volume today consists of buying and selling old securities -- essentially, legal claims on existing assets. The sale of new securities issued to finance the creation of new products and services -- for example, a company selling new s…

Similar things can be said about military research, law firms, medical clinics (not medical research), advertisement firms and most other types of work.

I disagree with this assumption. The problems with military research, law firms, advertisements are of degree not of its existence. Sure, they have their own problems. But we need military research: which is arisen out of insecurities of nation states, to given protection to their states. Law firms, too have a place so too medical clinics and advertisement firms.

In case of HFT, the argument is not of degree but existence. Military solves security problems of nation states, law firms communal issues of individual citizens, advertisements to help the product reach the intended audience. But what problem does HFT solve other than making a few people very rich.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#47
post #27

So much talent... focused on the buying and selling of securities , instead of creating new things that will make the world better in a directly measurable manner. Virtually all trading volume today consists of buying and selling old securities -- essentially, legal claims on existing assets. The sale of new securities issued to finance the creation of new products and services -- for example, a company selling new s…

While I wouldn't want to defend HFT on any moral grounds we are at least seeing some of the technology leaking out into open source. https://github.com/OpenHFT While I don't like the role of HFT in modern markets I find the technology that it drives very exciting.

Most of their technology is incredibly secret (for obvious reasons). They won't even tell you they're using your open source project (they can give you money though).

They're (on average) worse than your average tech shop. But then again, people like google or facebook will never buy software from anyone, so if we're left with just them, you can never create a business writing software that caters for other software companies, not sure what is worse.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#48
post #27

So much talent... focused on the buying and selling of securities , instead of creating new things that will make the world better in a directly measurable manner. Virtually all trading volume today consists of buying and selling old securities -- essentially, legal claims on existing assets. The sale of new securities issued to finance the creation of new products and services -- for example, a company selling new s…

Similar things can be said about military research, law firms, medical clinics (not medical research), advertisement firms and most other types of work.

http://www.marxists.org/archive/marx/works/1863/theories-sur...

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#49
post #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.

That is the most common one I've heard of.

Obviously if they are building fpgas into the switch itself then well of course they'd already tried running customized ethernet driver firmware and all.

Re: Barbarians at the Gateways: High-frequency Trading and Exchange Technology

#50

Earlier quoted context omitted.

Last time I checked, twitter programmers don't have a record of destroying economies nor deep capturing regulators.

What economy did low latency trading destroy? Also, is there any more deep capturing of regulators in the finance space post low latency trading than there was pre?

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