High Speed Trading and the speed of light

http://www.siliconinvestor.com/readmsgs ... htype=Next

"Just got done reading this article at my local Barnes and Noble, quite interesting, and it certainly appears that HST is NOT going away. I found the part on MICROWAVE towers fascinating, apparently due to some complicated physics light travels at 200,000 kilometers per second though fiber, but at 300,000 kilometers per second through the atmosphere, so guess what - of course a firm is building a network of MICROWAVE towers between Chicago and NY to cut the round trip latency from 13.1 milliseconds to a mere 8.5 milliseconds! Fascinating stuff and obviously the big money is there - witness the overseas cable being built with 'shark protection' because it will be in shallow water to save those precious milliseconds... I loved the closing paragraph, talking about TRADERS buying particle accelerators to save time in the future....


Raging Bulls: How Wall Street Got Addicted to Light-SPEED Trading "

Reminds me of the movie The Sting, getting and reacting to data just seconds faster.

Do you NOT find that disturbing? The "flash crash" of 87 supposedly put safeguards in place...... (do you TRUST those safeguards
now?)........ :faint:

homeagain wrote: Do you NOT find that disturbing? The "flash crash" of 87 supposedly put safeguards in place...... (do you TRUST those safeguards
now?)........ :faint:

The crash of '87 was Black Monday. Volume then was "only" a few hundred million shares a day. The "fix" implemented was "circuit breakers".

Flash crashes did not come until later.

THANKS for the clarification.....BUT, you did NOT answer my question......are the "safeguards" sufficient enough NOW?

homeagain wrote: THANKS for the clarification.....BUT, you did NOT answer my question......are the "safeguards" sufficient enough NOW?

:faint:

Would you hire a WOLF to guard you herd of SHEEP?

Would you trust a FOX to protect your CHICKEN COOP?

How about a hungry BEAR to protect your SALMON stream?

"Wall Street Campaign Donations Set To Hit Record During 2012 Election"

http://www.huffingtonpost.com/2012/09/0 ... 58086.html

Well then......let me be as SUCCINCT as possible.....WHAT is the solution to this issue? (We ALREADY know that the
"system" is rigged for the powerful and rich).......I asked a question and you ELECTED to be a supercilious a$$.....OF
COURSE, JMO......

A five minute time limit before you can make a trade in that stock once news breaks on it?
That should really decrease volume and let people take time to decide if they should really dump.

homeagain wrote: Well then......let me be as SUCCINCT as possible.....WHAT is the solution to this issue? (We ALREADY know that the
"system" is rigged for the powerful and rich).......I asked a question and you ELECTED to be a supercilious a$$.....OF
COURSE, JMO......

There is no issue to solve. Markets involve risk.