Hi speed trading - hi speed monitoring

Fri Feb 17 20:11:24 UTC 2012

On 2/17/12 11:47 , Kiriki Delany wrote:
> Why not just simultaneously settle all trades at the same time? Once every
> minute, or every 5 minutes, or per day? 
> 
> There are many solutions to the problem. I'm sure those that can take
> advantage of the latency don't want the solution. 

Ask yourself where the incentives are that drive the observed behavior.

> 
> Kiriki Delany
> 
> -----Original Message-----
> From: Leo Bicknell [mailto:bicknell at ufp.org] 
> Sent: Friday, February 17, 2012 10:54 AM
> To: NANOG
> Subject: Re: Hi speed trading - hi speed monitoring
> 
> In a message written on Fri, Feb 17, 2012 at 01:36:35PM -0500,
> Valdis.Kletnieks at vt.edu wrote:
>> 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?
> 
> I've had an interesting discussion with some financial heads about a simple
> idea.
> 
> What if the exchange, on every inbound trade, inserted a random delay, say
> between 0 and 60 seconds, before processing it?
> 
> Almost all of this computer based, let's be closer to the exchange stuff
> becomes junk, immediately.  Anyone "long" (where long is probably more than
> 10 minutes, with a 60 second jitter) in a security wouldn't notice.
> 
> I mean, if the general public has to get 15 minute delayed quotes so they
> don't manipulate the market, shouldn't the big guys? :)
> 