On 2/24/11 2:31 PM, Saku Ytti wrote: > On (2011-02-24 14:59 -0600), Richard A Steenbergen wrote: > >> latency in and of itself, just that you are "better than the other guy" >> so you can out-trade him). When it comes to microseconds of latency in >> the forwarding plane of a switch/router, I'm far less convinced that >> this is a real issue. > > I've also argued about this, while I have no experience in high frequency > trading networks. So it would be nice to hear from someone more experience > how they capitalize on the low latency switches in high frequency trading. > > It takes light about 5ns to travel 1m in fibre. Your average router MX80 is > about 8000ns latency, low latency switch is under 1000ns. > So we're talking for non low-latency run of the mill router introducing > latency matching 1.6km of fibre and low-latency switch introducing 250m > worth of latency. > > Now where is this information going? How near physically is the end > consumer of the information in high frequency trading?
the trading platform and the actors in question for a particular north american market are located in the same facility in Mahwah New Jersey. > What about the final application making trading decision? This is my own high > frequency trading software, it is highly optimized: > I have jitter of over 1000000ns between trading iterations. I'm guessing that > real-life trading software is slightly more elaborate than this, and thus has > higher jitter. that activity can be simple as front-running large orders (which take longer to fill) with small ones, an elaborate algorithm is not necessarily a requirement. I'm kind of down on the market utility of such activity but it's not presently illegal. joel _______________________________________________ juniper-nsp mailing list [email protected] https://puck.nether.net/mailman/listinfo/juniper-nsp
