RE: OT: high frequency trading

Actually most shops send the orders to different exchanges and black books and of course arbitrage between the price differences they can exploit.
The can often find liquidity before anyone else knows it exists, and they can send orders our for a very short time, of course pulling them if they don't get the price they want...

It's kind of a nice study to work with these guys- they do eat the slower players lunch (that may be software not just location based slowness).

Pretty much all the major players are already at the exchanges and therefore you have to do it.

-Joe

-----Original Message-----
From: nobody_at_groupstudy.com [mailto:nobody_at_groupstudy.com] On Behalf Of Gregory Gombas
Sent: Friday, February 12, 2010 9:17 AM
To: Anthony Bonilla
Cc: ccielab_at_groupstudy.com
Subject: Re: OT: high frequency trading

Tell them it won't matter anyway because whatever slight edge they
will get over their competitor by collocating at the exchange will
disappear once their competitor does the same :-)

On Thu, Feb 11, 2010 at 10:23 PM, Anthony Bonilla
<anthonybonilla.ccie_at_gmail.com> wrote:
> Hi all, I am back again. Have a question regarding high frequency trading.
> We are planning on collocating at an exchange for trading and are looking
> for doing lowest latency possible. I wanted to see if anyone else is doing
> this and if there are any recommendations. I am currently thinking about
> 4900M and nexus 5k (layer 2) but am interested in seeing what others have
> done and whether there are any best practices from cisco to ensure that we
> achive lowest latency. TIA.
>
>
> Blogs and organic groups at http://www.ccie.net
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Received on Fri Feb 12 2010 - 10:51:59 ART