[dba-Tech] HFT (High Frequency Trading)

Jim Lawrence accessd at shaw.ca
Sat Oct 19 16:16:01 CDT 2013


A very interesting article.

I understand that big traders actually have their own direct connection to the stock exchange. The stock exchange now has routers with atomic clocks in them so they can manage trades intervals to a billionth of a second.

Jim  

----- Original Message -----
From: "Arthur Fuller" <fuller.artful at gmail.com>
To: "Discussion of Hardware and Software issues" <dba-tech at databaseadvisors.com>
Sent: Saturday, October 19, 2013 10:40:40 AM
Subject: [dba-Tech] HFT (High Frequency Trading)

There are several articles available over at queue.acm.org on HFT and the
algorithms and hardware used to implement these systems. In one of
them, *Barbarians
at the Gateways*, former trader and HFT developer describes these systems
and mentions some of the performance demands. There is a measurement called
Tick to Trade Time, which consists of:

1. Receive a packet at the network interface.
2. Process the packet and run through the business logic of trading.
3. Send a trade packet back out on the network interface.

Loveless says that when he began in 2003, the goal was a Tick to Trade time
of under 10 milliseconds. By 2004, this was halved to under 5 milliseconds.
By 2009 the requirement was under 1 millisecond. By this point programmers
were rewriting kernels and using FPGAs (field programmable gate arrays).

Fascinating reading. The URL is queue.acm.org/detail.cfm?id=2536492.

-- 
Arthur
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