4 ms·

I always liked the idea that any trade being reversible within one second of being made. If you want it to be finalised it will be before you can even ask for

by Lerc 2y ago

I always liked the idea that any trade being reversible within one second of being made. If you want it to be finalised it will be before you can even ask for it, but I feel like it would mean that high speed trades would be mitigated by a mechanism like that. I'm sure some clever person can figure out a way to exploit that. I'd be interest to hear how that would work. I guess another way would be to quantize the time of trades down to a certain time threshold and two things come in at the same quantum, make them play Scissors, Paper, Stone to get them to decide who came first.

dmurray 2y ago
Versions of both of these exist in the FX market ("last look" and "latency floor" if you want to Google). They are successful in reducing, but not eliminating, the advantages of lower latency. It's not clear that they make the market more efficient or cheaper for unsophisticated users overall.
metalman 2y ago
things ARE reversed for special traders in specisl markets, like when metals went crazy a few years ago, and a major trader got caught out in a deal with a huge amount of nickle, and that and some other trades, were let off the hook. Now it's one more example of markets bieng rigged, not just through barriers to entry , but also that the trading "floor" is now somewhere secret and operating under flexible rules. All the money people need to be smacked up side of the head, and told that trying to sneek in some sort of fuedal system to run the world is not going to go well.....isn't going well. Fuck me, nasdaq with there hand in the till. we could get into, how much of the rest of the worlds economy is already running a parallel system, with national currencies, and direct trades in commodities, and how old allies are openly trying to join the alternative currency baskets. ie: sanctions and tarrifs, and the prospect of facing repercusions in local juristictions, and now that the orange one is shutting down the printing press, it has a great deal of the worlds.,......I shall euphemisticaly call...."liquidity"......looking for a better house to bet in.

by Lerc 2y ago

dmurray 2y ago

Versions of both of these exist in the FX market ("last look" and "latency floor" if you want to Google). They are successful in reducing, but not eliminating, the advantages of lower latency. It's not clear that they make the market more efficient or cheaper for unsophisticated users overall.

metalman 2y ago

things ARE reversed for special traders in specisl markets, like when metals went crazy a few years ago, and a major trader got caught out in a deal with a huge amount of nickle, and that and some other trades, were let off the hook. Now it's one more example of markets bieng rigged, not just through barriers to entry , but also that the trading "floor" is now somewhere secret and operating under flexible rules. All the money people need to be smacked up side of the head, and told that trying to sneek in some sort of fuedal system to run the world is not going to go well.....isn't going well. Fuck me, nasdaq with there hand in the till. we could get into, how much of the rest of the worlds economy is already running a parallel system, with national currencies, and direct trades in commodities, and how old allies are openly trying to join the alternative currency baskets. ie: sanctions and tarrifs, and the prospect of facing repercusions in local juristictions, and now that the orange one is shutting down the printing press, it has a great deal of the worlds.,......I shall euphemisticaly call...."liquidity"......looking for a better house to bet in.