[150035] in North American Network Operators' Group
Re: Hi speed trading - hi speed monitoring
daemon@ATHENA.MIT.EDU (Rodrick Brown)
Fri Feb 17 13:02:37 2012
In-Reply-To: <14641915.3369.1329492633531.JavaMail.root@benjamin.baylink.com>
From: Rodrick Brown <rodrick.brown@gmail.com>
Date: Fri, 17 Feb 2012 13:01:36 -0500
To: Jay Ashworth <jra@baylink.com>
Cc: NANOG <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On Feb 17, 2012, at 10:30 AM, Jay Ashworth <jra@baylink.com> wrote:
> ----- Original Message -----
>> From: "Paul Graydon" <paul@paulgraydon.co.uk>
>=20
>> Anecdotally, I had an interview years ago for a small-ish futures
>> trading company based in London. The interviewer had to pause the
>> interview part way through whilst he investigated a 10ms latency spike
>> that the traders were noticing on a short point-to-point fiber link to
>> the London Stock Exchange. He commented that the traders were far
>> better at 'feeling' when an connection was showing even a trace of lag
>> compared to normal than anything he'd set up by way of monitoring (not
>> sure how good his monitoring was, though.)
>=20
> This was my experience in a callcenter as well; network type problem repor=
ts
> always came in from the floor managers before Nagios came forth with an=20=
> opinion.
This has nothing to do with a gut feeling or instinct. Trading companies tod=
ay monitor P&L near realtime and traders will begin to experience low fill r=
ates or worse be rejected by trading counter parties when prices are too far=
off or out of the money. The longer a system takes to responds to market qu=
otes the lower fills rates they begin to notice and higher execution costs. T=
rades today in the equity markets must be within the national best bid, best=
offer price range or companies can be fined by the SEC which is why latency=
an jitter can be problematic in financial networks.=20
=20
> Cheers,
> -- jra
> --=20
> Jay R. Ashworth Baylink jra@baylink=
.com
> Designer The Things I Think RFC 2=
100
> Ashworth & Associates http://baylink.pitas.com 2000 Land Rover=
DII
> St Petersburg FL USA http://photo.imageinc.us +1 727 647 1=
274
>=20
