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Re: High frequency trading and a 4ms faster cable

From Randy Westlund <Vorzakir@invalid.invalid>
Newsgroups comp.misc
Subject Re: High frequency trading and a 4ms faster cable
Date 2014-04-06 19:44 +0000
Organization A noiseless patient Spider
Message-ID <lhsarc$gs3$1@dont-email.me> (permalink)
References <lhs9e8$bd$1@solani.org>

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On 2014-04-06, RS Wood wrote:
> Pretty spectacular article at the Guardian about Michael Lewis' new book
> detailing how high frequency trading is rigging the stock market and why
> investors are willing to plough hundreds of millions of dollars into a
> cable that would shorten network latency between Chicago and New York by
> 4ms.
>
> http://www.theguardian.com/business/2014/apr/06/michael-lewis-flash-boys-high-frequency-traders

I've done some reading about this before.  HFT scares me.  We have
thousands of algorithms running in NYC and Chicago, all trying to
buy and sell as fast as they can to rise the waves of whatever
trends they see.  The scary part is how this causes emergent
behavior of a complicated system that we can never hope to
understand.  There are flash crashes [1] that happen from time to
time, and we don't know why.  Maybe someone's algorithm trying to
create a trend?  Maybe just a race condition inherent in the
interactions of the algorithms?

And then we get silly things like property near the NYSE being
significantly more valuable because it can ping the NYSE in 0.5 ms
less time than other property in NYC.

1: http://en.wikipedia.org/wiki/Flash_Crash

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Thread

High frequency trading and a 4ms faster cable RS Wood <rsw@therandymon.com> - 2014-04-06 19:20 +0000
  Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-06 19:44 +0000
    Re: High frequency trading and a 4ms faster cable Dag-Erling Smørgrav <des@des.no> - 2014-04-06 22:21 +0200
      Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-07 01:11 +0000
    Re: High frequency trading and a 4ms faster cable Hils <hils@saynotospam.net> - 2014-04-06 21:23 +0100
      Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-07 01:05 +0000
        Re: High frequency trading and a 4ms faster cable Dave Garland <dave.garland@wizinfo.com> - 2014-04-08 15:36 -0500
          Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-09 05:51 +0000
            Re: High frequency trading and a 4ms faster cable Dave Garland <dave.garland@wizinfo.com> - 2014-04-09 16:24 -0500
              Re: High frequency trading and a 4ms faster cable Randy Westlund <Vorzakir@invalid.invalid> - 2014-04-10 17:40 +0000
    Re: High frequency trading and a 4ms faster cable Hils <hils@saynotospam.net> - 2014-04-06 21:39 +0100
    Re: High frequency trading and a 4ms faster cable Hils <hils@saynotospam.net> - 2014-04-06 21:39 +0100
      Re: High frequency trading and a 4ms faster cable RS Wood <rsw@therandymon.com> - 2014-04-07 08:57 +0000

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