[150114] in North American Network Operators' Group
Re: Hi speed trading - hi speed monitoring
daemon@ATHENA.MIT.EDU (Joel jaeggli)
Fri Feb 17 15:12:20 2012
Date: Fri, 17 Feb 2012 12:11:24 -0800
From: Joel jaeggli <joelja@bogus.com>
To: Kiriki Delany <kiriki@streamguys.com>
In-Reply-To: <078201ccedad$111efb70$335cf250$@com>
Cc: 'NANOG' <nanog@nanog.org>
Errors-To: nanog-bounces+nanog.discuss=bloom-picayune.mit.edu@nanog.org
On 2/17/12 11:47 , Kiriki Delany wrote:
> Why not just simultaneously settle all trades at the same time? Once every
> minute, or every 5 minutes, or per day?
>
> There are many solutions to the problem. I'm sure those that can take
> advantage of the latency don't want the solution.
Ask yourself where the incentives are that drive the observed behavior.
>
> Kiriki Delany
>
> -----Original Message-----
> From: Leo Bicknell [mailto:bicknell@ufp.org]
> Sent: Friday, February 17, 2012 10:54 AM
> To: NANOG
> Subject: Re: Hi speed trading - hi speed monitoring
>
> In a message written on Fri, Feb 17, 2012 at 01:36:35PM -0500,
> Valdis.Kletnieks@vt.edu wrote:
>> Am I the only one who thinks that if network jitter can make you fall
>> outside the acceptable price window, maybe, just maybe, the market is
>> just too damned volatile for its own good?
>
> I've had an interesting discussion with some financial heads about a simple
> idea.
>
> What if the exchange, on every inbound trade, inserted a random delay, say
> between 0 and 60 seconds, before processing it?
>
> Almost all of this computer based, let's be closer to the exchange stuff
> becomes junk, immediately. Anyone "long" (where long is probably more than
> 10 minutes, with a 60 second jitter) in a security wouldn't notice.
>
> I mean, if the general public has to get 15 minute delayed quotes so they
> don't manipulate the market, shouldn't the big guys? :)
>
