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The $300m cable that will save traders milliseconds

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posted on Sep, 13 2011 @ 03:38 PM
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The $300m cable that will save traders milliseconds


www.telegraph.co.uk

In the high-speed world of automated financial trading, milliseconds matter. So much so, in fact, that a saving of just six milliseconds in transmission time is all that is required to justify the laying of the first transatlantic communications cable for 10 years at a cost of more than $300m.

Seabed survey work for the Hibernian Express, as the 6,021km (3,741 mile) fibre-optic link will be known, is already under way off the east coast of America.
(visit the link for the full news article)


Related News Links:
en.wikipedia.org
www.thedailybeast.com
topics.nytimes.com
www.brattle.com




posted on Sep, 13 2011 @ 03:38 PM
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There is a wide range of opinions on the issue of High Frequency Trading.

Some are certain that it has made the marketplace more volatile instead of the normalizing effect it was purported to effect. In fact - many are sure that the crisis of recent financial debacles (in 1987 and 2008) were due in large part to this "out of control" practice.

In this case - if the reason that the problems surface from this trading activity was that humans do not have time to react to algorithm-driven supercomputer pumped trading, it's only going to get worse... although the companies that use it would say "better."


Hibernia Atlantic, the company behind it, is planning to sell a special superfast bandwidth that will have hyper-competitive trading firms and banks in the City of London and New York queuing to use it. In fact it is predicted they will pay about 50 times as much to link up via the Hibernian Express than they do via existing transatlantic cables.

The current leader, Global Crossing's AC-1 cable, offers transatlantic connection in 65 milliseconds. The Hibernian Express will shave six milliseconds off that time.


According to recent analysis the overwhelming majority of volumes now traded on the New York Stock Exchange (NYSE) and other U.S. exchanges are HFT transactions

Speed is the key.., and 6 milliseconds can be the difference between profiting millions - or not at all.

The links added will round you out nicely... by all means indulge.

www.telegraph.co.uk
(visit the link for the full news article)


edit on 13-9-2011 by Maxmars because: (no reason given)



posted on Sep, 13 2011 @ 03:46 PM
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I would much rather see that $300m being spent on food and infrastructure for people who don't have it. We really need to stop putting so much faith into stocks and lending and interest and all of that financial BS. What a waste of money to make already ridiculously rich people more rich instead of helping people around the world who have nothing.



posted on Sep, 13 2011 @ 03:47 PM
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HFT should be banned. It's rigging the markets, it's just ridiculous.

They are making millions of fake bids so the prices of stocks rise... BAN HFT, NOW.



posted on Sep, 13 2011 @ 03:59 PM
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Originally posted by Maxmars

Speed is the key.., and 6 milliseconds can be the difference between profiting millions - or not at all.



Think of the crash that could come as swiftly, what goes up must come down.
Of course, thats likely far in the future, carry on as usual with the rigged market for now.

disclaimer *not advice to buy, sell or trade*



posted on Sep, 13 2011 @ 04:14 PM
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Absolutely true - milliseconds mean money - day traders, at least the currency trading that I am familiar with goes to extraordinary lengths to gain a few milliseconds of time in their trades - and those are the small potatoes. Interesting development Maxmars, thanks for the info.



posted on Sep, 13 2011 @ 06:02 PM
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100% related video, and one of the absolute best Ted talks in recent years.

www.ted.com...


The cable itself is a good business and if the demand is there, then it is a worthwhile venture. As for the traders they say these people provide liquidity to the markets and make the market seem bigger, I dont know about their worth as investors or to the markets, but at least they are driving advancement of technology to serve their needs, Which is good.



posted on Sep, 13 2011 @ 06:57 PM
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The whole concept that people can bake billions trading ally currency just goes to show how bakrupt (sic) the world's commerce has become.

Wahtever happened to the idea of creating wealth by creating value??

Yeah, yeah....I know it still happens....but it seems to be the poor cousin....has been for a long time really but it's a lot more obvious now.



posted on Sep, 13 2011 @ 07:06 PM
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Originally posted by Desolate Cancer
100% related video, and one of the absolute best Ted talks in recent years.

www.ted.com...

The cable itself is a good business and if the demand is there, then it is a worthwhile venture. As for the traders they say these people provide liquidity to the markets and make the market seem bigger, I dont know about their worth as investors or to the markets, but at least they are driving advancement of technology to serve their needs, Which is good.


I believe, I think as you do, that the development of such technological strategies are without a doubt, a good thing.

My problem is that when the technology applied outstrips the capabilities of humans to mimic, it's application becomes either a benefit to humanity, or a threat.

Technology, in and of itself, is no more good or evil than fire. It is how it is applied that determines its value.In the case of HFT, it serves to speed up the transfer of wealth beyond human comprehension or ability to assess. The effect of this is that a conceptual (in reality) non existent specie.. wealth, currency; whatever you want to call it, functions without human control. Since we are talking about symbolic wealth, a 'fiat' affair that has no real tangible - physical - limitations, that "money" becomes vulnerable to manipulation which the collective human population cannot accommodate.

Perhaps this is elusive, I am finding it difficult to put into words. But it's sort of like trusting the efficiency of the program to do the right thing... without considering the technical vulnerabilities of the platform, or the programmer. How do we expect those charged with ensuring fairness and balance in the market to oversee transactions that occur in milliseconds? How do you watch things that happen so fast, you can't correct or react to problems in the physical worlds, as they are not reflected in near instantaneous electronic transactions.

www.alternet.org...'s_market_crash_a_direct_attack_by_financial_terrorists/
www.infowars.com...
theeconomiccollapseblog.com...

There are those who even suspect that one of Greece's recent financial deathblows came via an HFT snafu.

Yes it is great to see technology advance. But perhaps these better technologies must be considered as the potential weapons they are. DO we really want a machine to tell us that our investment is now worthless, only to sell in response, and then have it magically 'correct' itself back to it's "more-real" make-believe value? It will happen, more than once.
edit on 13-9-2011 by Maxmars because: (no reason given)



posted on Sep, 13 2011 @ 07:10 PM
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reply to post by Aloysius the Gaul
 



I believe we have adopted a fundamentally inverted paradigm of wealth.

The "Money Masters" and economist priests want us to believe that wealth is a cause. But I think wealth is an effect. They 'create' wealth... true wealth is not what we create, it is how our creation is valued. Labor is wealth... not credit.

Those controlling the economy of the world have a secret. And we are not supposed to know it, much less believe that it is possible they have created the entire affair from an actuarial table and their own greedy agenda.



posted on Sep, 13 2011 @ 07:20 PM
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reply to post by Maxmars
 


My personal opinion is that these people involved in hft are parasites and scoundrels. But my opinion doesnt matter. Really I think that there should be a tax of 90+% on trades that happen in less than one minute. That would even the playing field.

I know what you mean about the unknown and frightening and/or fantastical path technology couple with human ambition is taking us down. I worry about this all the time ever since I read an article about how the concept of a mad genius terrorist scientist is plausible and will most likely happen. Releasing a homemade pathogen or making nano bots or nano-explosives that cause mayhem etc.

But at the same time should we not progress head first and as hard as possible? The same things that can cause devastation can also end disease and hunger and bring about a world where the only limit is physics.
edit on 13-9-2011 by Desolate Cancer because: even



posted on Sep, 14 2011 @ 01:46 AM
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I work in the telecommunications and networking industry, such that I have enable access to over $2 billion worth of the highest-end routers, switches, optical equipment, and circuits. Every day I deal in this, trying to squeeze one more millisecond out of an OC-48 here, an OC-192 there, using advanced routing and switching protocols, the newest and cleanest optical fiber, public peering, etc.

Our company gets these kinds of requests all the time from morons that think an extra 8 to 10 milliseconds, an extra 8 to 10 thousandths of a second will make a difference in their network. They throw bags of cash at us, and we're told to bend over backward by sales to get them those extra few photons as our CFO giggles at their naiveté.

Trust me when I say that Hibernia Atlantic will make out better than the banks will.

/TOA



posted on Oct, 3 2011 @ 03:39 PM
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Light is not fast enough for high-speed stock trading
www.newscientist.com...


"The speed-of-light limitation is getting annoying," Andrew Bach, head of network services at NYSE Euronext, told the European Conference on Optical Communications in Geneva, Switzerland, last week.

With global markets currently in turmoil, it might seem a strange time to worry about the speed of trades, particularly when automated trading was implicated in the stock market's May 2010 "flash crash". But traders still want their computers to receive trading data and place orders instantaneously. And customers will go elsewhere if a rival is faster.


This is clearly a key issue for those who intend to make it rich being a few milliseconds faster than the competition.

So much so that the question of compressing the data stream is looked at as a time waster. Soon they will want to do away with encryption too, I bet.... that is, once they get their own 'exclusive' internet....



posted on Oct, 3 2011 @ 04:10 PM
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reply to post by Maxmars
 


Wouldn't neutrinos besides supposedly being faster than light, actually be a better choice since they can travel through mass unlike light which needs to follow the cable. The neutrinos can be shot straight from point a to point b.

Of course you will need to figure out a way to have the neutrinos carry information.



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