Hi speed trading - hi speed monitoring

Paul Graydon paul at paulgraydon.co.uk
Fri Feb 17 18:55:11 UTC 2012


On 02/17/2012 08:36 AM, Valdis.Kletnieks at vt.edu wrote:
> On Fri, 17 Feb 2012 13:01:36 EST, Rodrick Brown said:
>> Trades today in the equity markets must be within the national best bid, best
>> offer price range or companies can be fined by the SEC which is why latency
>> an jitter can be problematic in financial networks.
> Am I the only one who thinks that if network jitter can make you fall outside
> the acceptable price window, maybe, just maybe,  the market is just too damned
> volatile for its own good?
https://www.google.com/finance?client=ob&q=NASDAQ:AAPL 
<https://www.google.com/finance?client=ob&q=NASDAQ:AAPL>

See what happened on Wednesday with Apple's stock.  With no good cause 
it looks like various parties started to try and short it.  You can see 
the initial result from 12pm->1pm, the 'quick buck' 1pm-1:30pm rise, 
then the start of some more shorting at which point you can see the 
pattern emerge where the automatic trading algorithms started doing 
their thing.  Definitely too volatile.

Paul



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