nanog mailing list archives
Re: 60 ms cross-continent
From: Rubens Kuhl <rubensk () gmail com>
Date: Sun, 21 Jun 2020 14:17:08 -0300
On Sat, Jun 20, 2020 at 5:05 PM Marshall Eubanks <marshall.eubanks () gmail com> wrote:
This was also pitched as one of the killer-apps for the SpaceX Starlink satellite array, particularly for cross-Atlantic and cross-Pacific trading. https://blogs.cfainstitute.org/marketintegrity/2019/06/25/fspacex-is-opening-up-the-next-frontier-for-hft/ "Several commentators quickly caught onto the fact that an extremely expensive network whose main selling point is long-distance, low-latency coverage has a unique chance to fund its growth by addressing the needs of a wealthy market that has a high willingness to pay — high-frequency traders."
This is a nice plot for a movie, but not how HFT is really done. It's so much easier to colocate on the same datacenter of the exchange and run algorithms from there; while those algorithms need humans to guide their strategy, the human thought process takes a couple of seconds anyways. So the real HFTs keep using the defined strategy while the human controller doesn't tell it otherwise. And in order to preserve equality among traders, each exchange already adds physically (loops of fiber or copper cable) some ns to closer racks so everyone gets at the system at the same time. And then comes a really high added latency of the trade risk controller, which limits what a trader is allowed to expose itself to what is deposited or agreed with the exchange. And this comes with both latency and jitter due to its implementation, making even the faster HFT only faster on average, not faster at every transaction. Rubens
Current thread:
- Re: 60 ms cross-continent, (continued)
- Re: 60 ms cross-continent Saku Ytti (Jun 20)
- Re: 60 ms cross-continent Tim Požár (Jun 20)
- Re: 60 ms cross-continent Tony Finch (Jun 21)
- Re: 60 ms cross-continent Alejandro Acosta (Jun 20)
- Re: 60 ms cross-continent Joe Hamelin (Jun 22)
- Re: 60 ms cross-continent Rod Beck (Jun 22)
- Re: 60 ms cross-continent Carsten Bormann (Jun 20)
- Re: 60 ms cross-continent Marshall Eubanks (Jun 20)
- Re: 60 ms cross-continent Rubens Kuhl (Jun 21)
- Re: 60 ms cross-continent Brett Frankenberger (Jun 21)
- Re: 60 ms cross-continent Alejandro Acosta (Jun 21)
- Re: 60 ms cross-continent Rubens Kuhl (Jun 21)
- Re: 60 ms cross-continent Eric Kuhnke (Jun 21)
- Re: 60 ms cross-continent Stephen Satchell via NANOG (Jun 22)
- Re: 60 ms cross-continent Rod Beck (Jun 22)
- RE: 60 ms cross-continent adamv0025 (Jun 23)
- Re: 60 ms cross-continent Rod Beck (Jun 23)