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Strange


Total Posts: 1551
Joined: Jun 2004
 
Posted: 2018-11-11 02:25
I was talking to a friend who said that "low latency is for everyone now". Colos are cheap, fast hardware is ubiquitous, which I knew already more or less. However, for example, he said, there are people hitting the street with FPGA-based auto-spreaders that have W2W latencies similar to that achieved by lower-grade HFT firms. Or, another example, that you can get a microwave feed from Chicago (receive-only) to Mahwah for a several thousand dollars a month. In short, he said that while ultra-ultra-low latency might still require specialized skills, you can get access to a pretty reasonable setup for a very reasonable cost.

How true is that?

I don't interest myself in 'why?'. I think more often in terms of 'when?'...sometimes 'where?'. And always how much?'

FDAXHunter
Founding Member

Total Posts: 8372
Joined: Mar 2004
 
Posted: 2018-11-11 17:39
Your friend is correct. This comes as a result from really compressed margins in high-frequency and low-latency trading.

People started looking for ways to reduce costs. One way to do that was by renting out or sharing infrastructure, by selling technology to others, etc. So it became available to everyone (as is kind of natural with any technology I suppose).

The Figs Protocol.

Strange


Total Posts: 1551
Joined: Jun 2004
 
Posted: 2018-11-11 18:41
Thanks! Very interesting. Not that I think I have HF alpha, but investing some effort/money to reduce negative selection and improve my execution feels worth exploring.

Is there a good place to start (i.e. consultants, companies to talk to, etc)?

I don't interest myself in 'why?'. I think more often in terms of 'when?'...sometimes 'where?'. And always how much?'

prikolno


Total Posts: 43
Joined: Jul 2018
 
Posted: 2018-11-11 21:37
Is your profile email active?

Strange


Total Posts: 1551
Joined: Jun 2004
 
Posted: 2018-11-12 00:05
Yup, it is.

I don't interest myself in 'why?'. I think more often in terms of 'when?'...sometimes 'where?'. And always how much?'
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