[AusNOG] Networks in High Freq. Trading

[John Lindsay]

The latest transatlantic submarine cables sell price competitive circuits with the extra latency added on spools of fibre at the landing station and sell low latency at a solid premium because the traders will pay for it.

It feels like a shakedown but you can always buy from the high latency competitor.

Cheers,

John Lindsay
johnslindsay at mac.com
+61403577711

On 4 Apr 2014, at 9:34 am, Joseph Goldman <joe at apcs.com.au> 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
>> 
>> 
>> 
>> 
>> _______________________________________________
>> AusNOG mailing list
>> AusNOG at lists.ausnog.net
>> http://lists.ausnog.net/mailman/listinfo/ausnog
> 
> _______________________________________________
> AusNOG mailing list
> AusNOG at lists.ausnog.net
> http://lists.ausnog.net/mailman/listinfo/ausnog