6 ms·
Why would HFT even consider using it? They are located as close as possible to the exchange they operate on, not across states or halfway across the world.
by Zr40 6y ago
Why would HFT even consider using it? They are located as close as possible to the exchange they operate on, not across states or halfway across the world.
- moonbug 6y agoarbitrage
- yeahoo 6y agoorbitRage
- guywhocodes 6y agoGeographically distributed arbitrage?
- konschubert 6y agoArbitrage between multiple exchanges requires data to go from exchange A to exchange B as fast as possible. Light in vacuum is faster than light in fiber.
- deleted 6y ago[deleted]
- raducu 6y agoLight in vacuum is only faster if it goes in a straight line from point A to B, not if it zig-zags across 50 satellites.
- emteycz 6y agoHow could zigzagging through fiber be faster thaz zigzagging through vacuum? You still need to cross nearly the same distance with fiber.
- raducu 6y agoThe fiber is a fixed geometry. The satellite mesh is not, a straight line from point A to point B is not possible most of the time, given the number of satellites available and range of laser communication in space.
- iso1210 6y agohttps://www.youtube.com/watch?v=QEIUdMiColU https://www.youtube.com/watch?v=QEIUdMiColU is an animation of how it's supposed to work, including latencies There are enough satelites and low enough routing on the lasers to mean packets will arrive from London to NY faster than even a great-circle fibre. In reality how much bandwidth is available is a function of money, and HFTs tend to have a lot of money.
- deleted 6y ago[deleted]
- filleokus 6y agoBut if you can access to information from an exchange halfway across the world faster than others, you can definitely trade on that.
- de_watcher 6y agoAnd if you can break the speed of light, you don't need a second exchange.
- garmaine 6y agoIt’s quite easy to “break” the speed of light in fiberoptic glass.
- deleted 6y ago[deleted]
- de_watcher 6y agoBut it's not that useful even if you pour a glass cube over the whole exchange to slow it down.
- peteretep 6y ago> It’s quite easy to “break” the speed of light in fiberoptic glass. I don’t understand this, why? Does light travel faster than the speed of light in fibre optic glass?
- Dylan16807 6y ago"the speed of light in fiberoptic glass" is the thing being broken.
- Torkel 6y agoSame stock is listed in more than one place, and also e.g. stock movements in NY affect stocks in London. There are undersea cables built for this purpose: https://www.popularmechanics.com/technology/infrastructure/a7274/a-transatlantic-cable-to-shave-5-milliseconds-off-stock-trades/ https://www.popularmechanics.com/technology/infrastructure/a...
- eecc 6y agoWhat a waste of human ingenuity. And I thought ad-tech was bad enough
- unishark 6y agoThat is true for much of the finance field.
- emteycz 6y agoActually it's not. There are objective benefits to society that you simply ignore.
- piva00 6y agoAs there are objective downsides that we, collectively, are ignoring right now. Financial capitalism shouldn't be praised, at the very best it's a lesson, we got useful tools out of it and that is all.
- arijun 6y agoThey make trades at one exchange based of prices at another. For that reason there has been a lot of microwave relays set up between New York and Chicago, for example. Starlink could reduce latency from New York to London, another important center of trade.
- PopeDotNinja 6y agoLight travels 47% slower in a fiber optic cable than it does in the vacuum of space. [1] [1] https://youtu.be/giQ8xEWjnBs?t=288 https://youtu.be/giQ8xEWjnBs?t=288 (the whole video is worth watching, but that timestamp answers your specific question.
- raducu 6y agoToo lazy to watch it -- does it take into account the multiple criss-crossing satellite hops? I watched it -- no it doesn't :) It is comparing fiberoptics latency with straight line light propagation. So the worst case scenario of non-existing inter-satellite communication could easily be worse than fiberoptics. But I guess if the hedgefunds knew exactly which packet travels in a straight line, they could send one packet via Starlink and others via fiberoptics.
- endogui 6y agoHFT have installed microwave relays between Chicago and New York and between London and Berlin to arbitrage on the 47% fiber optic delay between the exchanges. A LEO satellite relay serves the same purpose. I can see London to New York, New York to Tokyo fiber connections being superceded by LEO satellite.
- zhte415 6y agoQuite surprised why LEO for cross exchange arbitrage was not already done. Microwaves were not super with weather conditions the last time taking an arbitrary interest.
- Tuna-Fish 6y agoLEO sat constellations that are low enough to beat existing solutions need to be almost global to provide reliable communication anywhere.
- kaliszad 6y agoIf you mean Deutsche Börse AG, than that would be Frankfurt am Main and not Berlin which is a slight difference of about 400 km. Frankfurt to London is actually a shorter distance. https://en.wikipedia.org/wiki/List_of_stock_exchanges https://en.wikipedia.org/wiki/List_of_stock_exchanges