You are right.
To be more precise, I should have said that the time sync should be at
least 1 order of magnitude less. In the case of <10us turnaround time,
it is assumed that the timesync is <1us. This is the reason that
everyone uses multiple stratum 1 NTP servers using GPS in their
datacenters.
So the Forex transaction goes like this:
1. (Both parties) Are we in proper sync timewise?
2. (Party 1) I need transaction type x. My timestamp is: xxxx.xxxx. Go.
3. (PArty 2) Confirmed. My timestamp is: yyyy.yyyy. Go.
These timestamps are legal entities and bind both parties to the transaction.
That's why transactions have a data transfer entity in the middle
(Reuters, Bloomberg) which guarantees proper timesync for all involved.
With Reuters in the middle, only the Reuters timestamp (arrival time
and send time) can be trusted.
However, Many times you will see a Reuters machine lose sync and the
UNIX SA's will restart NTP on it. Reuters puts more than one machine
per site for redundancy.
Quoting Hal Murray <[email protected]>:
[email protected] said:
You can forget Wall St. firms and Banks for starters.
They need sub-microsecond accurate timing as some instruments (Forex) are
moving to <10 microsecond latency from order entry to order ack.
10 microsecond latency doesn't say anything about how accurate the time has
to be.
Does anybody have a good URL on the accuracy requirements of banks and/or
stock markets? I expect there are both legal and technical issues. I'd like
to understand them separately but I won't be surprised if they are thoroughly
tangled.
--
These are my opinions, not necessarily my employer's. I hate spam.
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