3 ms·
The SIP (consolidated feed) is tasked with using the most efficient hardware and software available. If a private company can consolidate faster than the SIP, t
by TheNanex 11y ago
The SIP (consolidated feed) is tasked with using the most efficient hardware and software available. If a private company can consolidate faster than the SIP, then the SIP isn't using the most efficient hardware and software available now is it?
Pretty simple.
The exchanges take in $500M a year in SIP fees, which are supposed to go to the most efficient hardware and software available. Pretty sure that's not happening.
- KMag 11y ago> Pretty simple. Oversimplification, forgetting the laws of geometry and physics. The triangle inequality and relativity conspire against the SIP. If you're getting the SIP from B, any new prices at C go to B and then forwarded to you, so it's faster (best case equal in the degenerate triangle case) to get direct feeds from B and C and consolidate locally.
- kasey_junk 11y agoNot to mention the CAP theorem. For the SIP to work you have to have a much stronger consistency model across many more nodes. To arbitrage latency in it you need neither.
- TheNanex 11y agoAre you saying the SIP runs on the best hardware/software available? I want to get that cleared up before moving on to a new topic.
- KMag 11y agoI don't know about the hardware being used by the SIP. It might very well be very slow hardware. You clearly have a lot more knowledge than I do and have done some very good research. I was just pointing out that > If a private company can consolidate faster than the SIP, then the SIP isn't using the most efficient hardware and software available now is it? is faulty reasoning.