On 07/20/2011 08:24 AM, Ian G wrote:

Yes, sure, but:

1. we are talking about high frequency trading here, and speed is the
first, second and third rule. Each trade could be making 10k++ and up,
which buys you a lot of leaches.

Basically, you have to get the trade down to the cost of a packet, delay
and two secret key ops. Indeed, if you can measure the delay of the
secret key op, we might be encouraged to pre-calculate shared PRNG
streams so as to speed up the encrypt/decrypt cycle.

I once spoke with some engineers who built and run one of those high-speed electronic trading networks/exchanges. Their time to match trades was something like 50 microseconds. Their serious members colocated their trading systems in their datacenter because it was so critical to eliminate the propagation delay.

I guess I don't see the need to do bitcoin crypto transactions at that speed any more than the other high-speed exchanges need to rapidly move stock certificates, hard cash, or perform ACH/EFTs.

(Gee I wonder if I should file a patent on that idea :P )

Maybe you could be the next Certicom!   ^_^

This and other aspects of high frequency trading forces a credit
exposure to the trades, which requires someone to step in and control
that credit.

But the term "high speed electronic exchange" seems to mean exactly this, almost by definition.

- Marsh
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