[AusNOG] Networks in High Freq. Trading

[Luca Salvatore]

HFQ traders in Australia don't really do much on ASX, the market is just
too small.
It's all happens in the Asian countries.... Korea, Hong Kong... etc

I've been working for one HFQ trader (albeit only for a short time) and the
main markets were all in Asia.  We would complain if there was a 10ms
increase in latency between sites in Korea.
On the LAN side, we measured latency in nanos, or micros... it we hit
millisecond latency there was big issues, i.e big $$ lost.


On Fri, Apr 4, 2014 at 4:47 AM, James Spenceley <james at iroute.org> wrote:

> vocus has the lowest latency path, which we built specifically to
> guarantee the lowest latency to the ASX.
>
> it was 2 years ago now but a very cool project and has been popular with a
> very specific customer group ever since ...
>
> http://www.itnews.com.au/News/304818,vocus-lays-cross-harbour-fibre.aspx
>
> --
> James
>
>
>
> On 4 Apr 2014, at 4:22 pm, J Williams <jphwilliams at gmail.com> wrote:
>
> This is probably already happening on the Australian stock market.
> What is the fastest network between Equinix and Gore Hill Business Park?
> Finished the book yesterday, great read.
>
>
> On Fri, Apr 4, 2014 at 10:04 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
>>>
>>
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