[AusNOG] Networks in High Freq. Trading

[Tim March]

This is a good read for anyone interested in the topic;

	http://www.amazon.com/Flash-Boys-Wall-Street-Revolt/dp/0393244660/ref=sr_1_fkmr0_1?ie=UTF8&qid=1396566953&sr=8-1-fkmr0&keywords=The+Big+Short+Book+Flash+Boys%3A+A+Wall+Street+Revolt




T.

On 4/04/14 10:04 AM, Joseph Goldman wrote:
> 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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