Re:Nanex Gets $700k Whistleblower Award from SEC
by KMag on Wednesday March 02, 2016 @08:53PM
(#11214534)
> Pretty simple.
Oversimplification, forgetting the laws of geometry and physics.
The triangle inequality and relativity conspire against the SIP. If you're getting the SIP from B, any new prices at C go to B and then forwarded to you, so it's faster (best case equal in the degenerate triangle case) to get direct feeds from B and C and consolidate locally.
Re:Nanex Gets $700k Whistleblower Award from SEC
by kasey_junk on Wednesday March 02, 2016 @09:48PM
(#11214717)
Not to mention the CAP theorem. For the SIP to work you have to have a much stronger consistency model across many more nodes. To arbitrage latency in it you need neither.
Re:Nanex Gets $700k Whistleblower Award from SEC
by TheNanex on Thursday March 03, 2016 @11:48AM
(#11218040)
Are you saying the SIP runs on the best hardware/software available? I want to get that cleared up before moving on to a new topic.
Re:Nanex Gets $700k Whistleblower Award from SEC
by KMag on Thursday March 03, 2016 @06:38PM
(#11220923)
I don't know about the hardware being used by the SIP. It might very well be very slow hardware. You clearly have a lot more knowledge than I do and have done some very good research.
I was just pointing out that
> If a private company can consolidate faster than the SIP, then the SIP isn't using the most efficient hardware and software available now is it?
is faulty reasoning.
Pretty simple.
The exchanges take in $500M a year in SIP fees, which are supposed to go to the most efficient hardware and software available. Pretty sure that's not happening.