At the US Federal Reserve someone stole. Seven milliseconds
On September 18, the US “central bank” - the Federal Reserve System - issued a statement that it would not curtail its program of scattering money from a “quantitative easing” helicopter , under which $ 85 billion is pumped into the American economy every month.
Habr is not an economic site, so let's not talk about economists' debates about “tightening the belts” during the crisis against the idea of “pumping” the economy with money, or about modern capitalism as a whole. An interesting process and its technological reverse.
For the exchange player, the news about whether the Central Bank will spend 85 billion practically free money or not is very big. No, really, very, very big. And since modern Western stock culture is considered a serious crime to insider trading, the promulgation of the decision is very carefully arranged.
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Journalists arrive at the Fed office by 1:45 pm on the day of the announcement and gather in the press room, after which the doors close behind them. At 1:50 pm, Fed officials hand out the text of the decision to them in order to give the press an opportunity to familiarize themselves with complex financial text. At 13:58, TV reporters are allowed to go to the balcony to their cameras. “Writing” journalists are allowed to dial the telephone number of their editorial staff. But the Fed rules do not allow either one or the other to utter a single word strictly until 2:00 pm — time, which is checked against the “national atomic clock” in Colorado. Electronic media, of course, have an advantage - written in a hurry squeeze about the essence of the decision falls on the news feeds immediately after the end of the "embargo".
What astonished everyone who followed the process this time was that in 7 milliseconds, during which the light could theoretically reach 960 kilometers from Washington to the Chicago Stock Exchange via fiber optic cable, high-frequency traders appreciated it and followed up with deals on difficultly imaginable $ 600 million ., removing the best choice cream from the subsequent rapid growth on the positive news.
This is all the more interesting given the fact that the first transactions, taking into account the Fed's decision, should have happened on the New York Stock Exchange a couple of milliseconds earlier than in Chicago, since NY is closer, but this did not happen.
CNBC journalists are already interested in the phenomenon , conducting the interrogation of all who had access to the decision before 14 o'clock in the afternoon. Financial journalism grants such as Thomson Reuters and Dow Jones got off with oaths that the embargo did not break and the news was not published ahead of time. At the same time, the general public was surprised to find out about the existence of a completely new type of news agencies specializing in the fast delivery of data in a machine-readable form directly to the analytical IT systems of high-frequency traders.
However, while everyone is looking for a realistic explanation of what happened, exotic versions are being put forward . A bunch of bytes with information about the key decision will fly 960 km from Washington to Chicago via optical fiber in 7 ms; if they were flying at the speed of light - in 3.2 ms., and in a straight line, cutting the path through the Earth's crust - even a little faster. It has long been known that Wall street flirts with scientists, mathematicians and statisticians - and who knows, have they gone further, to physicists?
So the question is - no one, by any chance, noticed the neutrinos flying through the American Midwest last week?
Update: here is the paper press in the face of "Vedomosti" a day later noted: www.vedomosti.ru/finance/news/16832641/600-mln-za-doli-sekundy
Habr is not an economic site, so let's not talk about economists' debates about “tightening the belts” during the crisis against the idea of “pumping” the economy with money, or about modern capitalism as a whole. An interesting process and its technological reverse.
For the exchange player, the news about whether the Central Bank will spend 85 billion practically free money or not is very big. No, really, very, very big. And since modern Western stock culture is considered a serious crime to insider trading, the promulgation of the decision is very carefully arranged.
')
Journalists arrive at the Fed office by 1:45 pm on the day of the announcement and gather in the press room, after which the doors close behind them. At 1:50 pm, Fed officials hand out the text of the decision to them in order to give the press an opportunity to familiarize themselves with complex financial text. At 13:58, TV reporters are allowed to go to the balcony to their cameras. “Writing” journalists are allowed to dial the telephone number of their editorial staff. But the Fed rules do not allow either one or the other to utter a single word strictly until 2:00 pm — time, which is checked against the “national atomic clock” in Colorado. Electronic media, of course, have an advantage - written in a hurry squeeze about the essence of the decision falls on the news feeds immediately after the end of the "embargo".
What astonished everyone who followed the process this time was that in 7 milliseconds, during which the light could theoretically reach 960 kilometers from Washington to the Chicago Stock Exchange via fiber optic cable, high-frequency traders appreciated it and followed up with deals on difficultly imaginable $ 600 million ., removing the best choice cream from the subsequent rapid growth on the positive news.
This is all the more interesting given the fact that the first transactions, taking into account the Fed's decision, should have happened on the New York Stock Exchange a couple of milliseconds earlier than in Chicago, since NY is closer, but this did not happen.
CNBC journalists are already interested in the phenomenon , conducting the interrogation of all who had access to the decision before 14 o'clock in the afternoon. Financial journalism grants such as Thomson Reuters and Dow Jones got off with oaths that the embargo did not break and the news was not published ahead of time. At the same time, the general public was surprised to find out about the existence of a completely new type of news agencies specializing in the fast delivery of data in a machine-readable form directly to the analytical IT systems of high-frequency traders.
However, while everyone is looking for a realistic explanation of what happened, exotic versions are being put forward . A bunch of bytes with information about the key decision will fly 960 km from Washington to Chicago via optical fiber in 7 ms; if they were flying at the speed of light - in 3.2 ms., and in a straight line, cutting the path through the Earth's crust - even a little faster. It has long been known that Wall street flirts with scientists, mathematicians and statisticians - and who knows, have they gone further, to physicists?
So the question is - no one, by any chance, noticed the neutrinos flying through the American Midwest last week?
Update: here is the paper press in the face of "Vedomosti" a day later noted: www.vedomosti.ru/finance/news/16832641/600-mln-za-doli-sekundy
Source: https://habr.com/ru/post/195222/
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