[AusNOG] Networks in High Freq. Trading

[Joseph Goldman]

The thing that stuck out to me most - is the updates via multiple 
'exchanges' when an order is placed, and the front-running they 
described. Obviously as network builders it is not our role to take 
ethics and morals into account when doing things like this - but with 
the structure of ASX, is the same thing [frontrunning] possible? Or is 
this industry secret/question that won't be answered?

I understand and fully support the need to have low-latency 
communication with the ASX to catch trends first and get your orders 
filled at the right price, but the idea that they were detecting trades 
early and beating them to the trade before the order was filled is 
outright devious (IMHO).

Ethics and the actual trading itself aside - i liked the idea of 
staggering the orders so they hit out at once, and the new exchange they 
started using a 60km roll of fibre to artificially inflate response !

On 04/04/14 09:51, Tim Jones wrote:
> Interesting video Joe.
>
> The Vocus fibre under Sydney Harbour was rolled out to the ASX Gore Hill Primary DC shortening the path from the city by 400 metres:
>
> http://news.slashdot.org/story/12/06/15/0139255/aussie-telco-lays-new-fiber-for-microsecond-trading-boost
>
>
> And for participants in the ASX Gore Hill DC:
>
> "the ASX will commission a 60 metre fibre path to customer equipment that is only two metres from its core systems, to ensure that customer gains no better speeds than customers in far corners of the room."
>
> http://www.itnews.com.au/News/261198,asx-takes-network-neutrality-to-new-extremes.aspx#ixzz2xrllcQ00
>
> Cheers,
> Tim
>
>
>
> -----Original Message-----
> From: AusNOG [mailto:ausnog-bounces at lists.ausnog.net] On Behalf Of joe at apcs.com.au
> Sent: Friday 4 April 2014 6:59 AM
> To: ausnog at ausnog.net
> Subject: [AusNOG] Networks in High Freq. Trading
>
> Hi list,
>
>    Just watched this piece:
>
>      http://www.youtube.com/watch?v=8RFLIj4a2kw#t=29
>
>    It's 60 minutes, so a bit sensationalised, but it discusses the role of fibre optic networks in stock exchanges and namely High Frequency trading, and some interesting solutions to the problem. Found it quite interesting so thought I'd share!
>
> Thanks
>
>
>
>
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