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0 pointshomero9y ago0 comments

And with hft guarded so well, can't they just use the patent and not get caught?

0 comments

4 comments · 1 top-level

reddytowns9y ago· 3 in thread

The idea doesn't help the hft'ers. It takes an order, secretly transmits it to computers each as near to the major markets as possible, with instructions so that the computers submit the trade offer at precisely the same time.

The hft'ers can't make money since they can't outrun trade offers that are synchronous across all markets.

lsaferite9y ago

As someone with zero domain knowledge, why aren't the exchanges already doing precision timed order processing? That just seems like it's should be a standard feature across the board. The broker sends buy/sell orders with planned execution times to all the required exchanges and the exchanges sit on the orders until the designated time.

kasey_junk9y ago

Exchanges do time ordered processing on their own exchange (with different levels of precision). I don't know of any exchanges that offer execution time as a constraint, but new order types can be created if they were deemed valuable (it takes SEC approval).

That said, it wouldn't alleviate the issue necessarily. If firms detect problems in the clock sync between exchanges you are right back to the same problem, and now you've added a complex bit of tech that requires a bunch of competitors to agree on.

This seems, to me at least, to be one of those problems that it is better to let the problem surface than to try to alleviate with an abstraction layer that is leaky and error prone.

1 more reply

ktRolster9y ago

As someone with zero domain knowledge, why aren't the exchanges already doing precision timed order processing?

HF traders give the exchanges a nice cut (colocation costs, etc). Not many corps can afford it.

1 more reply

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0 comments

4 comments · 1 top-level

reddytowns9y ago· 3 in thread

The idea doesn't help the hft'ers. It takes an order, secretly transmits it to computers each as near to the major markets as possible, with instructions so that the computers submit the trade offer at precisely the same time.

The hft'ers can't make money since they can't outrun trade offers that are synchronous across all markets.

lsaferite9y ago

As someone with zero domain knowledge, why aren't the exchanges already doing precision timed order processing? That just seems like it's should be a standard feature across the board. The broker sends buy/sell orders with planned execution times to all the required exchanges and the exchanges sit on the orders until the designated time.

kasey_junk9y ago

Exchanges do time ordered processing on their own exchange (with different levels of precision). I don't know of any exchanges that offer execution time as a constraint, but new order types can be created if they were deemed valuable (it takes SEC approval).

That said, it wouldn't alleviate the issue necessarily. If firms detect problems in the clock sync between exchanges you are right back to the same problem, and now you've added a complex bit of tech that requires a bunch of competitors to agree on.

This seems, to me at least, to be one of those problems that it is better to let the problem surface than to try to alleviate with an abstraction layer that is leaky and error prone.

1 more reply

ktRolster9y ago

As someone with zero domain knowledge, why aren't the exchanges already doing precision timed order processing?

HF traders give the exchanges a nice cut (colocation costs, etc). Not many corps can afford it.

1 more reply

j / k navigate · click thread line to collapse