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Re: Hi speed trading - hi speed monitoring
From: Joel jaeggli <joelja () bogus com>
Date: Fri, 17 Feb 2012 12:11:24 -0800

On 2/17/12 11:47 , Kiriki Delany wrote:
Why not just simultaneously settle all trades at the same time? Once every
minute, or every 5 minutes, or per day? 

There are many solutions to the problem. I'm sure those that can take
advantage of the latency don't want the solution. 

Ask yourself where the incentives are that drive the observed behavior.

Kiriki Delany

-----Original Message-----
From: Leo Bicknell [mailto:bicknell () ufp org] 
Sent: Friday, February 17, 2012 10:54 AM
Subject: Re: Hi speed trading - hi speed monitoring

In a message written on Fri, Feb 17, 2012 at 01:36:35PM -0500,
Valdis.Kletnieks () vt edu wrote:
Am I the only one who thinks that if network jitter can make you fall 
outside the acceptable price window, maybe, just maybe,  the market is 
just too damned volatile for its own good?

I've had an interesting discussion with some financial heads about a simple

What if the exchange, on every inbound trade, inserted a random delay, say
between 0 and 60 seconds, before processing it?

Almost all of this computer based, let's be closer to the exchange stuff
becomes junk, immediately.  Anyone "long" (where long is probably more than
10 minutes, with a 60 second jitter) in a security wouldn't notice.

I mean, if the general public has to get 15 minute delayed quotes so they
don't manipulate the market, shouldn't the big guys? :)

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