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The Miami stock exchange (MIAX) has their matching engines colocated in Equinix's NY4 data center in Secaucus NJ, much like many other exchanges. I would not b

The Miami stock exchange (MIAX) has their matching engines colocated in Equinix's NY4 data center in Secaucus NJ, much like many other exchanges. I would not be surprised if TXSE does the same. Many trading firms already have their trading engines in that data center and I would assume TXSE would want quick access to that order flow and this might be easier if they are in NY4. Of course, they may want to have their colo facilities in TX in their own data center, that way they can rent out space and make some extra revenue, but then they'd have to build that out.

Bluecobra 1y ago
If anything they will build a backup DC in Texas so they can hold that over NJ in case the local government starts talking about transaction taxes again. The CME is currently building a “backup” private Google Cloud datacenter in Dallas.
- chronic74939 1y ago
  > The CME is currently building a “backup” private Google Cloud datacenter in Dallas. This has been “in progress” for over 5 years now.
  - vslira 1y ago
    Probably doesn't ever need to be completed, just in the works as a reminder every time the aforementioned taxes are floated as an idea
throw94i4485 1y ago
[flagged]
- deleted 1y ago
  [deleted]
chrismustcode 1y ago
Couldn’t they just send some hardware down Texas to co-locate there (presuming specialist hardware) and add another deployment target for their software? Would it be that hard?
- indoordin0saur 1y ago
  The issue is the speed of light.
  - terminalshort 1y ago
    Not really because anyone running a trading strategy that needs to worry about latency is already running their servers in the same datacenter as the exchange, so that just moves with it. What probably is an issue is that the datacenters required for a market don't look like AWS datacenters. I don't have any direct experience here, but I would be shocked if HFT software is something you could just deploy to a standard VM like on AWS.
    - AlotOfReading 1y ago
      They'd probably be running in an Equinix facility instead of AWS.
  - leecarraher 1y ago
    for an interesting reversal of the "problem" of the speed of light, IEX is a stock exchange design to combat HFT by adding a physical speed bump by way of 38 miles of fiber optic cable. The general idea being to level the playing field and improve market liquidity using physical communication limits of light. https://en.wikipedia.org/wiki/IEX https://en.wikipedia.org/wiki/IEX
    - kasey_junk 1y ago
      That marketing gimic adds hundreds of microseconds to order latency. It’s not designed to level any playing fields it’s designed to get publicity.
pclmulqdq 1y ago
TXSE has also made overtures about putting live trading in New Jersey like everyone else, but they may be putting their back-end in Texas.
robocat 1y ago
> I would assume TXSE would want quick access to that order flow Perhaps Texas could use a different trading model that doesn't require ultra high speed trading. Matt Levine often mulls the idea of a system with a trading window that doesn't let the fastest connection to the order book win. Perhaps an order book that works at human speeds so humans can trade too (I can think of a few ways to do it - but would need modelling to try and figure what actually works). He points out that most trades are done in the last hour, so really trading only needs to occur once a day. The issue is whether a market trading system can be designed with suitable restrictions that beats the current market design (for listed companies and for traders). Designing markets is hard because you have to assume every player is selfish and only cooperates where it is to their benefit and will defect or cheat if the incentives of the market encourage that (Enron in the California energy markets). Unlikely since SEC would need to approve of a different system of market trade incentives. Edit: Personally I would like to see an exchange that was more international. I'm from New Zealand and our good businesses often list on the Australian exchange rather than the NZSX. The system of ADRs for other countries feels like a massive hack.
- robertlagrant 1y ago
  > He points out that most trades are done in the last hour, so really trading only needs to occur once a day. Presumably then the last trader has the most information, and so the game would be getting the info as late as possible and trading as late as possible, but not too late.
  - schlauerfox 1y ago
    That's one thing that will make blockchain trading interesting as it's discreet block by block, such as the ex-dividend date who holds a stock when the dividends are paid, might make fees for that block very competitive. The SEC is really struggling now with good regulation but it's coming end of the year to draw the line in the sand.
    - stuartjohnson12 1y ago
      I was going to make the old joke about discrete vs discreet but I suppose that blockchain trading is both.
EnderWT 1y ago
From: https://www.txse.com/trading-membership https://www.txse.com/trading-membership > TXSE’s primary matching engine is located in Equinix NY6 in Secaucus, NJ, with latency equalization across NY4, NY5, and NY6. Customers outside these buildings will experience additional latency. The disaster recovery (DR) matching engine is hosted in Equinix DA11 in Dallas, TX. > Customers may connect to DR either directly to DA11 or through TXSE infrastructure at 350 E. Cermak in Chicago. Cermak connections will have traffic backhauled to DA11 over redundant TXSE circuits. Backhaul from Cermak to the production data center is not available.
sgc 1y ago
I would rather see an exchange that requires buyers to hold their shares for at least x days or weeks, and slow everything way down so that people are actually forced to make decisions based on fundamentals rather than trading based on jitters in market movement. Then the datacenter location is almost irrelevant.
- danielmarkbruce 1y ago
  Who is that a value proposition for? Will they pay for it? How? This is one of those ideas that actually makes zero sense. It's why the "long term stock exchange" has failed so miserably.
- deleted 1y ago
  [deleted]
- wbl 1y ago
  You don't want that unless you want to wait days to trade.
  - sgc 1y ago
    That is the point. So much stock market activity is just gambling with a lot of veneer to cover it up. Enough with the games.
    - wbl 1y ago
      I think it's good that I get to deposit money into my 401k quickly.
- quickthrowman 1y ago
  You can construct a synthetic long or short position with options [0], so those would need to be removed as well. Options are much too useful for market participants (market makers in particular), so your idea is dead in the water. [0] For US equity options, if you sell a put and simultaneously buy a call at the same strike price, you have a synthetic long that acts like owning 100 shares of the underlying asset (no dividends, but that’s already priced in to the options). Buy a put and simultaneously sell a call at the same strike price and you have a synthetic short that acts like being short 100 shares of the underlying asset.
wilkinsdougie 1y ago
[dead]
jaredwiener 1y ago
They have job postings that include NYC-based network operations engineers. https://www.txse.com/meet-the-team#careers https://www.txse.com/meet-the-team#careers
sheepscreek 1y ago
I think the ‘Texas’ part in the TXSE is mainly from a business procurement pov. They’re hoping to capitalize on the recent growth in the area, which is possibly ripe for a lot of new listings. The actual electronic trading might still originate in NJ. I don’t believe they’ll have a floor. I think they are going the NASDAQ route, unless I’m confusing them with Long Term Stock Exchange (I was researching both around the same time). Take the above with a heap of salt. It’s part my intuition and part things I might have read on the internet (including their corporate site).

Bluecobra 1y ago

If anything they will build a backup DC in Texas so they can hold that over NJ in case the local government starts talking about transaction taxes again. The CME is currently building a “backup” private Google Cloud datacenter in Dallas.

chronic74939 1y ago
> The CME is currently building a “backup” private Google Cloud datacenter in Dallas. This has been “in progress” for over 5 years now.
- vslira 1y ago
  Probably doesn't ever need to be completed, just in the works as a reminder every time the aforementioned taxes are floated as an idea

throw94i4485 1y ago

[flagged]

deleted 1y ago
[deleted]

chrismustcode 1y ago

Couldn’t they just send some hardware down Texas to co-locate there (presuming specialist hardware) and add another deployment target for their software? Would it be that hard?

indoordin0saur 1y ago
The issue is the speed of light.
- terminalshort 1y ago
  Not really because anyone running a trading strategy that needs to worry about latency is already running their servers in the same datacenter as the exchange, so that just moves with it. What probably is an issue is that the datacenters required for a market don't look like AWS datacenters. I don't have any direct experience here, but I would be shocked if HFT software is something you could just deploy to a standard VM like on AWS.
  - AlotOfReading 1y ago
    They'd probably be running in an Equinix facility instead of AWS.
- leecarraher 1y ago
  for an interesting reversal of the "problem" of the speed of light, IEX is a stock exchange design to combat HFT by adding a physical speed bump by way of 38 miles of fiber optic cable. The general idea being to level the playing field and improve market liquidity using physical communication limits of light. https://en.wikipedia.org/wiki/IEX https://en.wikipedia.org/wiki/IEX
  - kasey_junk 1y ago
    That marketing gimic adds hundreds of microseconds to order latency. It’s not designed to level any playing fields it’s designed to get publicity.

pclmulqdq 1y ago

TXSE has also made overtures about putting live trading in New Jersey like everyone else, but they may be putting their back-end in Texas.

robocat 1y ago

> I would assume TXSE would want quick access to that order flow Perhaps Texas could use a different trading model that doesn't require ultra high speed trading. Matt Levine often mulls the idea of a system with a trading window that doesn't let the fastest connection to the order book win. Perhaps an order book that works at human speeds so humans can trade too (I can think of a few ways to do it - but would need modelling to try and figure what actually works). He points out that most trades are done in the last hour, so really trading only needs to occur once a day. The issue is whether a market trading system can be designed with suitable restrictions that beats the current market design (for listed companies and for traders). Designing markets is hard because you have to assume every player is selfish and only cooperates where it is to their benefit and will defect or cheat if the incentives of the market encourage that (Enron in the California energy markets). Unlikely since SEC would need to approve of a different system of market trade incentives. Edit: Personally I would like to see an exchange that was more international. I'm from New Zealand and our good businesses often list on the Australian exchange rather than the NZSX. The system of ADRs for other countries feels like a massive hack.

robertlagrant 1y ago
> He points out that most trades are done in the last hour, so really trading only needs to occur once a day. Presumably then the last trader has the most information, and so the game would be getting the info as late as possible and trading as late as possible, but not too late.
- schlauerfox 1y ago
  That's one thing that will make blockchain trading interesting as it's discreet block by block, such as the ex-dividend date who holds a stock when the dividends are paid, might make fees for that block very competitive. The SEC is really struggling now with good regulation but it's coming end of the year to draw the line in the sand.
  - stuartjohnson12 1y ago
    I was going to make the old joke about discrete vs discreet but I suppose that blockchain trading is both.

EnderWT 1y ago

From: https://www.txse.com/trading-membership https://www.txse.com/trading-membership > TXSE’s primary matching engine is located in Equinix NY6 in Secaucus, NJ, with latency equalization across NY4, NY5, and NY6. Customers outside these buildings will experience additional latency. The disaster recovery (DR) matching engine is hosted in Equinix DA11 in Dallas, TX. > Customers may connect to DR either directly to DA11 or through TXSE infrastructure at 350 E. Cermak in Chicago. Cermak connections will have traffic backhauled to DA11 over redundant TXSE circuits. Backhaul from Cermak to the production data center is not available.

sgc 1y ago

I would rather see an exchange that requires buyers to hold their shares for at least x days or weeks, and slow everything way down so that people are actually forced to make decisions based on fundamentals rather than trading based on jitters in market movement. Then the datacenter location is almost irrelevant.

danielmarkbruce 1y ago
Who is that a value proposition for? Will they pay for it? How? This is one of those ideas that actually makes zero sense. It's why the "long term stock exchange" has failed so miserably.
deleted 1y ago
[deleted]
wbl 1y ago
You don't want that unless you want to wait days to trade.
- sgc 1y ago
  That is the point. So much stock market activity is just gambling with a lot of veneer to cover it up. Enough with the games.
  - wbl 1y ago
    I think it's good that I get to deposit money into my 401k quickly.
quickthrowman 1y ago
You can construct a synthetic long or short position with options [0], so those would need to be removed as well. Options are much too useful for market participants (market makers in particular), so your idea is dead in the water. [0] For US equity options, if you sell a put and simultaneously buy a call at the same strike price, you have a synthetic long that acts like owning 100 shares of the underlying asset (no dividends, but that’s already priced in to the options). Buy a put and simultaneously sell a call at the same strike price and you have a synthetic short that acts like being short 100 shares of the underlying asset.

wilkinsdougie 1y ago

[dead]

jaredwiener 1y ago

They have job postings that include NYC-based network operations engineers. https://www.txse.com/meet-the-team#careers https://www.txse.com/meet-the-team#careers

sheepscreek 1y ago

I think the ‘Texas’ part in the TXSE is mainly from a business procurement pov. They’re hoping to capitalize on the recent growth in the area, which is possibly ripe for a lot of new listings. The actual electronic trading might still originate in NJ. I don’t believe they’ll have a floor. I think they are going the NASDAQ route, unless I’m confusing them with Long Term Stock Exchange (I was researching both around the same time). Take the above with a heap of salt. It’s part my intuition and part things I might have read on the internet (including their corporate site).