HFT and the Speed of Light

[lambdacoug]

http://www.motherjones.com/kevin-drum/2013/09/somebody-stole-7-milliseconds-federal-reserve

Good stuff.

[Uncle Ted]

http://www.motherjones.com/kevin-dru...ederal-reserve

Good stuff.

Hehe... Experimental Physics Geeks: 1 Spreadsheet Monkeys: 0

[Indy Coug]

Quantum computers strike again!

[calicoug]

http://www.motherjones.com/kevin-dru...ederal-reserve

Good stuff.

The crazy thing is how much money can move in that amount of time.

Here's a link to a video showing high frequency trading over a half second period. Unreal.

http://www.businessinsider.com/half-a-second-of-high-frequency-trading-2013-5

[lambdacoug]

The crazy thing is how much money can move in that amount of time.

Here's a link to a video showing high frequency trading over a half second period. Unreal.

http://www.businessinsider.com/half-...trading-2013-5

A few years ago I interviewed with an HFT company here in KC. It is one of two interviews where I left the interview vowing to never work there. I asked about their development process, specifically testing. I figured that with a financial software system making millions/billions of trades they would have an elaborate and careful software dev and testing strategy. They responded with "We hire people good enough that we don't need to do lots of testing." I wish I were exaggerating. This kind of shit software is inside our financial system, so fucked up.

[Uncle Ted]

A few years ago I interviewed with an HFT company here in KC. It is one of two interviews where I left the interview vowing to never work there. I asked about their development process, specifically testing. I figured that with a financial software system making millions/billions of trades they would have an elaborate and careful software dev and testing strategy. They responded with "We hire people good enough that we don't need to do lots of testing." I wish I were exaggerating. This kind of shit software is inside our financial system, so fucked up.

The financial at this high speed trading level is technological warfare. I have some friends that work at a hedge fund in NYC. Their data center is unbelievable. It will, however, be all obsolete in less than 18 months so they are constantly rebuilding the racks. They also are making an unbelievable crap load of money.

[YOhio]

The financial at this high speed trading level is technological warfare. I have some friends that work at a hedge fund in NYC. Their data center is unbelievable. It will, however, be all obsolete in less than 18 months so they are constantly rebuilding the racks. They also are making an unbelievable crap load of money.

Is the data center located in Manhattan? I can't imagine the electricity and space costs. Seems risky to put a data center in a place with such an old infrastructure.

[SCcoug]

Is the data center located in Manhattan? I can't imagine the electricity and space costs. Seems risky to put a data center in a place with such an old infrastructure.

I bet low latency makes it worth it.

[Uncle Ted]

Is the data center located in Manhattan? I can't imagine the electricity and space costs. Seems risky to put a data center in a place with such an old infrastructure.

They have to be as close as possible to the exchange (to save a few milliseconds, I guess). Hurricane Sandy did shut them down for a bit.

[calicoug]

The financial at this high speed trading level is technological warfare. I have some friends that work at a hedge fund in NYC. Their data center is unbelievable. It will, however, be all obsolete in less than 18 months so they are constantly rebuilding the racks. They also are making an unbelievable crap load of money.

The give government really ought to impose a financial transactions tax. It wouldn't have to be large and would eliminate lots of the low margin trades being done today without affecting most actual traders. This crap is not good for anyone other than the traders.

[old_gregg]

The give government really ought to impose a financial transactions tax. It wouldn't have to be large and would eliminate lots of the low margin trades being done today without affecting most actual traders. This crap is not good for anyone other than the traders.

...or people who benefit from liquid financial markets

[calicoug]

...or people who benefit from liquid financial markets

Yeah. The market definitely isn't liquid without hft.

[Uncle Ted]

The give government really ought to impose a financial transactions tax. It wouldn't have to be large and would eliminate lots of the low margin trades being done today without affecting most actual traders. This crap is not good for anyone other than the traders.

Yes, let's move those financial exchanges off-shore and shutdown entire stink hole places like NYC!

[old_gregg]

Yeah. The market definitely isn't liquid without hft.

markets aren't liquid or illiquid. what is the cost of hft?

[Surfah]

Is the data center located in Manhattan? I can't imagine the electricity and space costs. Seems risky to put a data center in a place with such an old infrastructure.

http://www.popularmechanics.com/technology/engineering/infrastructure/a-transatlantic-cable-to-shave-5-milliseconds-off-stock-trades