Light introductory NYTimes article on the fascinating subject of high frequency trading. It's not mentioned in the article but I've read that ~70% of all trades in equity markets are made by these computer programs. There is a real worry about the stability of markets given this situation. And the story of Goldman possibly front running the market is very interesting.
+5 Slashdot comments on the NYT article. Some of which are interesting - like this one explaining the positive effects of high frequency trading.
Zero Hedge high frequency trading posts. This is the guy who's all over the story. Much more in depth here.
In a "virtual" age, these high frequency trades require proximity. The physical delay through fibers and routers becomes an issue when tens of milliseconds make all the difference.
The round trip delay for light (assuming speed of light in free space, and no delay due to optical repeaters or networking gear) from coast to coast is >30 msec.
We're right across the street from the NYSE so we're all set if we want to get into it... :-)
Goldman is colocated in the same facility as the exchanges. That's access!
Schumer makes a little noise like he might be good for something and asks the SEC to ban flash trading. (Zero Hedge on what Flash Orders are and how they make money for Goldman Sachs.)
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- jim 7-24-2009 4:46 pm
+5 Slashdot comments on the NYT article. Some of which are interesting - like this one explaining the positive effects of high frequency trading.
Zero Hedge high frequency trading posts. This is the guy who's all over the story. Much more in depth here.
- jim 7-24-2009 9:48 pm [add a comment]
In a "virtual" age, these high frequency trades require proximity. The physical delay through fibers and routers becomes an issue when tens of milliseconds make all the difference.
The round trip delay for light (assuming speed of light in free space, and no delay due to optical repeaters or networking gear) from coast to coast is >30 msec.
- mark 7-24-2009 11:41 pm [add a comment]
We're right across the street from the NYSE so we're all set if we want to get into it... :-)
Goldman is colocated in the same facility as the exchanges. That's access!
- jim 7-25-2009 12:15 am [add a comment]
Schumer makes a little noise like he might be good for something and asks the SEC to ban flash trading. (Zero Hedge on what Flash Orders are and how they make money for Goldman Sachs.)
- jim 7-25-2009 3:30 pm [add a comment]