4 ms·

Google should open a stock exchange. Sure, they'd be weary of the immense regulation involved. But I imagine they're much more qualified to build a fair, fast

Google should open a stock exchange. Sure, they'd be weary of the immense regulation involved. But I imagine they're much more qualified to build a fair, fast and accurate trading system than any of the existing exchanges are.

tptacek 11y ago
What would be more "fair" or "fast" or "accurate" about Google's exchange? I've gotten to do software pentests of several huge exchanges. They work pretty much the way you'd expect them to. A lot of things people are just starting to do in web software (message-mediated microservices) were idiomatic in finance in the 1990s.
- nostromo 11y ago
  Look no further than the linked article. > a high quote rate from any NYSE stock will cause a corresponding delay in all NYSE public quotes! Anyone with this knowledge can easily cause latency on demand across many stocks, by simply blasting quotes in any one stock Or another link from this thread. > U.S. stock exchanges have invested huge sums of money creating two-tier markets - building and offering faster data and technology infrastructures at a price that only a small niche of traders can benefit from or afford, while at the same time continuing to offer slower products to everybody else. https://www.iextrading.com/about/press/op-ed/ https://www.iextrading.com/about/press/op-ed/
  - tptacek 11y ago
    That was true on one exchange in 2012. It's no longer true today on NYSE, and probably wasn't true at any other venue (Hunsader is able to explain how he found this in a relatively small blog post; dollars to donuts he looked everywhere else for it too). So: not delaying public quotes is table stakes. What could Google do better than that? I'm not so much challenging you as I think it's an interesting question, and would like to see it hashed out in technical detail.

4 ms·

Google should open a stock exchange. Sure, they'd be weary of the immense regulation involved. But I imagine they're much more qualified to build a fair, fast

by nostromo 11y ago

tptacek 11y ago
What would be more "fair" or "fast" or "accurate" about Google's exchange? I've gotten to do software pentests of several huge exchanges. They work pretty much the way you'd expect them to. A lot of things people are just starting to do in web software (message-mediated microservices) were idiomatic in finance in the 1990s.
- nostromo 11y ago
  Look no further than the linked article. > a high quote rate from any NYSE stock will cause a corresponding delay in all NYSE public quotes! Anyone with this knowledge can easily cause latency on demand across many stocks, by simply blasting quotes in any one stock Or another link from this thread. > U.S. stock exchanges have invested huge sums of money creating two-tier markets - building and offering faster data and technology infrastructures at a price that only a small niche of traders can benefit from or afford, while at the same time continuing to offer slower products to everybody else. https://www.iextrading.com/about/press/op-ed/ https://www.iextrading.com/about/press/op-ed/
  - tptacek 11y ago
    That was true on one exchange in 2012. It's no longer true today on NYSE, and probably wasn't true at any other venue (Hunsader is able to explain how he found this in a relatively small blog post; dollars to donuts he looked everywhere else for it too). So: not delaying public quotes is table stakes. What could Google do better than that? I'm not so much challenging you as I think it's an interesting question, and would like to see it hashed out in technical detail.