News for hackers. Stuff that matters.
Re:HFT in my backyard – II by yummyfajitas on Friday September 26, 2014 @11:47AM (#8373200)
The thing is, the bugs manifest in many different ways. Sometimes you get ramp&drop, sometimes you get on-off flicker, there are a wide variety of things that can happen. Take a look at the graphs from Nanex - lots of different things are happening. I realize that to an outsider they may all look like "graphs going wonky", but similarly all computer bugs look like "omfg I just want my email" to a marketer.

It's not a programming language issue - it's a math issue that would happen in any programming language. Whether you use Python or Haskell, you'll run into problems if you call SOLVE(A,x) on an ill conditioned matrix A. So you cook up a special routine that works well for most of the inputs you expect to see and it screws up for the tiny fraction of cases where you get a bad matrix.

Throwing money and a team of devs won't get around this. Similarly, you can't put together a team of crack devs (each earning $500k/year) and ask them to solve the CAP Theorem in 6 months. All you can do is choose your tradeoffs and hope that most of the time your network puts you on the good side of those tradeoffs.

Re:HFT in my backyard – II by namecast on Friday September 26, 2014 @02:13PM (#8373965)
Chris: you need to identify yourself if you're going to push your viewpoint here. You're the only author of a controversial blog post that's pushing what I'll gently describe as an interesting theory - not a casual HN observer just bringing up some talking points. If I hadn't caught your CAP theorem quote ("solve the CAP theorem", wha?) and the Nanex reference, I would have missed this and not drilled down to your user details.

Next time, feel free to add a </disclaimer> of some sort.

I'm not an outsider unless you've got one intense No True Scotsmen definition of the word, and I'll leave it at that. Let's just agree to disagree, and I'll say that you are certainly entitled to your opinion. Thank God, it's a free country and a free market :) Good luck.

Re:HFT in my backyard – II by nanexllc on Saturday September 27, 2014 @08:29PM (#8378569)
Really, are you that naive to how the markets work? Intenalizers - Citadel for example, give retail traders prices based off the SIP and buy/sell on direct. Whenever there's a pricing difference, it's instant risk-less profits. You can induce that pricing difference by quote stuffing.
Re:HFT in my backyard – II by minimax on Friday September 26, 2014 @04:33PM (#8374707)
The problem with every allegation of quote stuffing I have ever seen is that it always looks like this:

1) Blast quotes

2) ???

3) Profit

Same problem in this thread. It would be a much more convincing argument if you could spell out the actual trade.