Great piece in the NY Times...

Taft2016 said:
I've been saying for years that this market is grossly overvalued.

Individual trading is way off and investor confidence is low. The DOW keeps rising on computers trading paper back-and-forth. Incessant paper swaps.

The end is drawing near.
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Abraxas said:
The point I'm trying to make is that it's fairly easy to inspect packet data and determine the origin.
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Is the issue 'origin', or speed at which a trade is made? In essence, these kids have added thousands of feet of transmission line for the speed guys to navigate.
 
The Dude said:
Also high speed traders detect your order, buy before you the sell to you at a higher price.
It should be banned
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lol Dude.....that's what the thread is about.....somebody slip Dude a clue, apparently he's reading threads through 6 km of fiber optic cable and not keeping up.....
 
Althea said:
Is the issue 'origin', or speed at which a trade is made? In essence, these kids have added thousands of feet of transmission line for the speed guys to navigate.
Click to expand...

The point is once you inspect the data packets and determine the origin it is easy to introduce a delay simply by switching the data down different routes. The speed of light is 300, 000 kms per second, so a 60 km fibre would only introduce a propagation delay of 0.0002 of a second or 0.2 millisecond.
 
The Dude said:
Also high speed traders detect your order, buy before you the sell to you at a higher price.
It should be banned
Click to expand...
Yes...because they were set up at every location between the trading floor, and other networks. In essence, all trades were intercepted by their network. That's why these kids went to the farthest reaches first, in order to skirt this network.
 
Abraxas said:
The point is once you inspect the data packets and determine the origin it is easy to introduce a delay simply by switching the data down different routes. The speed of light is 300, 000 kms per second, so a 60 km fibre would only introduce a propagation delay of 0.0002 of a second or 0.2 millisecond.
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But isn't that considered a lot of time in this instance?

http://online.wsj.com/news/articles/SB10001424052702303947904579340711424615716


The lasers, perched atop high-rise apartment buildings, towers and office complexes along the 35-mile stretch between the communities, are the first phase of a grid intended to link nearly all U.S. stock exchanges this way, zipping market data and rapid-fire trades.
It is the latest salvo in the "race to zero," traders' term for their efforts to whittle away the difference between the speed their orders travel at and the speed of light. Zero, the point at which that difference would disappear, has become a kind of holy grail to computerized traders, for whom nanoseconds—billionths of a second—can spell the difference between profit and loss in their algorithm-driven trades.
 
Althea said:
But isn't that considered a lot of time in this instance?

http://online.wsj.com/news/articles/SB10001424052702303947904579340711424615716


The lasers, perched atop high-rise apartment buildings, towers and office complexes along the 35-mile stretch between the communities, are the first phase of a grid intended to link nearly all U.S. stock exchanges this way, zipping market data and rapid-fire trades.
It is the latest salvo in the "race to zero," traders' term for their efforts to whittle away the difference between the speed their orders travel at and the speed of light. Zero, the point at which that difference would disappear, has become a kind of holy grail to computerized traders, for whom nanoseconds—billionths of a second—can spell the difference between profit and loss in their algorithm-driven trades.
Click to expand...

Yes, maybe so, I was forgetting that light travels slower in glass than in a vacuum.
 
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