The day of traders exclaim fiat on the New York Stock Exchange ’s floor may soon be over . A Modern stock of investing , hump as High Frequency Trading , has taken detention of the equities market — one that relies on cybernation and automation to work fleeting price changes for an investor ’s financial addition . And where latency is the elementary cadence of success , count on in milliseconds , fibre might not even be tight enough . But that ’s where the microwave oven radio come in .
HFT activeness account for nearly 40 percent of the total volume of equities traded in 2012 , a physique deserving some 6.7 trillion euros . That ’s 6.7 trillion reasons for a pair of companionship , Perseus Telecom and Colt Group SA , to offer their customers a microwave radio transmission military service between the NYSE Euronext Basildon data center in London — home to the Euronext cash and Liffe derivative markets — and Equinix in Frankfurt — where both the Deutsche Boerse cash and Eurex derivatives market reside . Together , they ’re two of Europe ’s largest investment funds hubs .
microwave oven wireless is a line - of - flock transmission scheme that relies on a pair of high increase microwave radio transmitting aerial pointed at one another to transmit data at very high speeds . And by “ high velocity , ” I mean they ’ll actually transmit data quicker than the character optic meshwork offered by each ship’s company merely because the data travels a shorter distance — thanks ancestry - of - passel requirement ! Each radio set relay has a maximum cooking stove of about 30 to 40 mile and are often situate on stack peaks because , again , line - of - sight and knickknackery .
The technology itself is nothing Modern , AT&T has been developing microwave oven technology since its Long Lines systems in the fifties and ’ 60s . These electrical relay used to daisy chain across the US but were overtaken by fiber optic technology in the 1980s . These days , microwave oven radio linkup are most often used by tidings vans to radiate a feed from the newsman in the field back to the studio apartment . That said , “ There is more money being pour into this wireless space than any time in its history , ” remarked Mike Persico , primary executive of wireless communication web Anova Technologies . “ High frequency trading is driven by being either the fastest to market , or equal fastest to food market , and coming second is like losing , ” Hugh Cumberland , a manager at Colt , suppose in a press dismissal .
Both troupe microwave systems extend similar performance — reducing the time command to get at the securities industry by 40 percent , in the sub-4.6ms to 4.74 ms kitchen stove , and offering 99 pct uptime . That ’s well-nigh half the Ping River time of the fast fiber itinerary , which clock in at a pokey 8.3 milliseconds .
Yes , of course this method acting of investing is risky — specially to the food market as a whole ! commend the biggest - ever everyday dip in gilt value ? Really ? It happened just last month . HFT scripted response that underprice gold as value fell only helped to exacerbate the terms dip . Similarly , the “ newsflash crash ” of 2010 , when the US fund market plummeted 1,000 points in less sentence than it takes to heat up a frozen burrito , is impute to HFT systems . Ten percent of the stock market place ’s economic value — poof , gone — in second .
No , of course the jeopardy of setting off another neat Depression is n’t enough to dissuade investors from the practice . “ Our customer are always look for speed to grocery advantage , ” say Andy Young , a Colt transmissions specialist . “ A combination of both microwave and fibre is the late engineering weapon in a high-pitched frequency trader ’s armory , as the wash for more grocery liquidity gathers pace . ”
Anything for a long horse .
[ Reuters – Colt – Low Latency1,2 – image : The AP ]
Stocks
Daily Newsletter
Get the best tech , science , and culture news in your inbox daily .
News from the time to come , delivered to your nowadays .
You May Also Like
