3 ms·
Truly an allocation with zero or negative net value. Wouldn't they relatively be equal off if the latency for all firms was increased by say 100ms.
by metacritic12 3y ago
Truly an allocation with zero or negative net value.
Wouldn't they relatively be equal off if the latency for all firms was increased by say 100ms.
- ke88y 3y agoI'm fairly convinced that trading venues should be substantially slowed such that HFT isn't a thing. I am unconvinced that the benefits of liquidity are worth the resources allocated. I'm also skeptical of the Religion of Liquidity -- I think maybe after a certain point increasing liquidity is not necessarily a net good.
- kmeisthax 3y agoThere's actually an exchange that did this. In order to avoid software problems that would negate the slowing, they actually plugged their servers into a giant box full of fiber optic cable. If someone manages to get past that, then they don't have an HFT firm, they have a time machine. https://www.youtube.com/watch?v=d8BcCLLX4N4 https://www.youtube.com/watch?v=d8BcCLLX4N4
- nickysielicki 3y agoactively preventing price discovery only makes the market more unfair and brutal.
- ke88y 3y agoI've spent a loooong time going down this particular rabbit hole. I just don't buy it. We can spill a lot of ink going back and forth, but honestly? At the end of the day, "this seems like useless bullshit" is actually a really good instinct. I know that sounds a tad anti-intellectual, but I think HFT for market making is one of those cases where very smart people delude themselves out of an obviously correct instinctive understanding of the truth. But we can dive down the rabbit hole if you want.