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General purpose computers networks and software are far from optimal for high speed trading. A few years back ACM Communications published a comprehensive white
by peter303 8y ago
General purpose computers networks and software are far from optimal for high speed trading. A few years back ACM Communications published a comprehensive white paper of trading communications bottlenecks including the effect of virtual memory page faults and TCP/IP collisions. Dedicated trade networks want custom software without virtualization features. Or if you dont want to develop that much, use the ancient real time UNIX NASA has in its space probes like VxWorks.
In a few weeks there is annindie film called The Hummingbird Project about avrace between firms to build the fastest dedicated trading line.
- spelunker 8y agoThe book Flash Boys by Michael Lewis covers HFT in general and a similar fiber optic line built by Spread Networks in 2010. It's definitely a fascinating world. Apparently HFT's have moved on to microwave (https://www.bloomberg.com/news/features/2019-03-08/the-gazillion-dollar-standoff-over-two-high-frequency-trading-towers https://www.bloomberg.com/news/features/2019-03-08/the-gazil...) to gain a further edge over fiber optic.