4 ms·

If everybody is exactly 350us slower, then it’s still the same game. Iex also offers a variety of (dark) order types that can pull back without the 350us delay

If everybody is exactly 350us slower, then it’s still the same game. Iex also offers a variety of (dark) order types that can pull back without the 350us delay if iex believes the incoming flow will be toxic

Terr_ 3y ago
> If everybody is exactly 350us slower, then it’s still the same game. IANATrader, but I don't think that's entirely true. Yes, it won't stop Carol from getting information from somewhere and then running in front of Alice to the same exchange. [0] However even fixed-delays [1] can still create uncertainty about what price your order may actually execute at when it hits the server, which is something HFTs rely on more heavily than other traders, since their strategy depends on high-certainty that they will have a small positive margin on every trade. __ [0] I find it geeky-amusing to write (i.e. IEX) or (ex: IEX) because it feels like the start of a mental tounge-twister. [1] Can't edit my original post anymore, but apparently there's another 350μs on the outbound path too.
- vgatherps 3y ago
  > However even fixed-delays [1] can still create uncertainty about what price your order may actually execute at when it hits the server, which is something HFTs rely on more heavily than other traders, since their strategy depends on high-certainty that they will have a small positive margin on every trade This is also true on every single other exchange, albeit to a smaller degree. You have a larger queue of possible things that may have happened, but this issue exists everywhere. No exchange has instant entry. On a very short timescale things are very jumpy - nothing happens for a while, and then everything happens all at once. The queuing problem tends to be more of “did another hft beat me to the same event”, not general random other events, so queues like IEXs tend to be emptyish anyways.

Terr_ 3y ago

> If everybody is exactly 350us slower, then it’s still the same game. IANATrader, but I don't think that's entirely true. Yes, it won't stop Carol from getting information from somewhere and then running in front of Alice to the same exchange. [0] However even fixed-delays [1] can still create uncertainty about what price your order may actually execute at when it hits the server, which is something HFTs rely on more heavily than other traders, since their strategy depends on high-certainty that they will have a small positive margin on every trade. __ [0] I find it geeky-amusing to write (i.e. IEX) or (ex: IEX) because it feels like the start of a mental tounge-twister. [1] Can't edit my original post anymore, but apparently there's another 350μs on the outbound path too.

vgatherps 3y ago
> However even fixed-delays [1] can still create uncertainty about what price your order may actually execute at when it hits the server, which is something HFTs rely on more heavily than other traders, since their strategy depends on high-certainty that they will have a small positive margin on every trade This is also true on every single other exchange, albeit to a smaller degree. You have a larger queue of possible things that may have happened, but this issue exists everywhere. No exchange has instant entry. On a very short timescale things are very jumpy - nothing happens for a while, and then everything happens all at once. The queuing problem tends to be more of “did another hft beat me to the same event”, not general random other events, so queues like IEXs tend to be emptyish anyways.