[AusNOG] Networks in High Freq. Trading

[Darragh Kennedy]

It got a bit testy on CNBC - http://video.cnbc.com/gallery/?video=3000263252

Tks,
Darragh



On Fri, Apr 4, 2014 at 10:16 AM, John Lindsay <johnslindsay at mac.com> wrote:

> 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
> >>
> >>
> >>
> >>
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