SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?


To: combjelly who wrote (33661)9/8/2017 10:03:46 AM
From: zzpat  Read Replies (1) | Respond to of 362967
 
I think you missed the point entirely. The discussion is about the distance from an exchange and the speed that super computers are using to have an unfair advantage over other investors. They're literally working on a method where they can trade in the past, not just microseconds and nanoseconds in the future.

These computers can crash the market (flash crash) and force prices up or down without actually investing in the market by pulling their buys and sells before they're executed.



To: combjelly who wrote (33661)9/8/2017 10:32:39 AM
From: TimF  Read Replies (1) | Respond to of 362967
 
Tim, if they are putting up microwave towers to avoid the latency of going through fiber, 10 microseconds is probably really, really significant. You still don't grasp the CPU power available.

My point has little to do with the CPU power. (Although that's a potential lesser issue as well, the computer has to bring in the data, analyze it, find a trading opportunity, and send the order to execute the trade, its not just an issue of how quickly the computer can execute one instruction.)

Once the computer sends out the execute order, its go to travel through the computer, through the local network, to the transmitting tower (if their avoiding fiber), across the small distance to the exchange, and through the exchanges network.

And of course it has to be processed at the exchange.

I know it all happens really quickly but there is no way that total is in the nanosecond range, and I very much doubt it happens even in a single microsecond.