Michael Lewis hits back

Re:Michael Lewis hits back by doktrin on Friday April 11, 2014 @10:19PM (#7576700)

Tangential question :

What are the barriers to entry to HFT?

Or, put differently - how well funded would a venture have to be to realistically compete in this space?

Assuming talent (e.g. market knowledge, quantitative skills, ML competence) was not an issue - how realistic would it be to get access to the fiber & real estate necessary to compete with the very few market leaders?

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Re:Michael Lewis hits back by yummyfajitas on Friday April 11, 2014 @10:27PM (#7576725)

Fees million at most. Real estate + connections are commoditized - tens of thousands a month for starting out.

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Re:Michael Lewis hits back by doktrin on Friday April 11, 2014 @10:34PM (#7576738)

> tens of thousands a month for starting out.

I couldn't find any reports of prices that low. According to one article, at least, Spread [1] charges ~$300k a month.[2]

[1] http://spreadnetworks.com/network-map/

[2] http://www.motherjones.com/politics/2013/02/high-frequency-t...

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Re:Michael Lewis hits back by yummyfajitas on Friday April 11, 2014 @11:02PM (#7576813)

My NDA prevents me from discussing pricing. If you look up my resume and do some sleuthing, you can probably piece together the details of where to go for it.

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Re:Michael Lewis hits back by fr0sty on Friday April 11, 2014 @10:41PM (#7576755)

spread has an interconnect between Chicago and New York but that is not generally useful for HFT stock trading since nearly every execution venue is in New Jersey.

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