The Senate will deal with ultrafast trading
A couple of days ago, on the first (!) Page of the NY Times, a kind of a purely technical article stating that some “privileged” companies have the opportunity to trade within 30 milliseconds after receiving bids (quotas) is much faster than everyone else. Allegedly their servers are installed directly on the exchange next to those servers where transactions are carried out. The examples showed exactly how you can earn a profit as much as one cent per share. With billions of transactions per day, one cent per share is a lot of money. A simple scheme for obtaining super-profits is shown in the diagram. I hope everyone understands English.
Interestingly, the recent scandal with the Russian programmer Goldman Sachs is from the same opera. It is this company that is considered the main "schemer" of superfast trading. Therefore, the theft of software codes from the company is a matter of US national security, because the Goldman Sachs software is de facto used for manipulation on the exchange.
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The effect of the devastating article in the NY Times was not long in coming. Just a few days later, Democratic Party Senator Charles Schumer asked the SEC to formally ban the practice of ultra-high-speed trading, because it contradicts the principles of the free market.
It should be noted that no legal obstacles can stop the trend, according to which exchange trading is rapidly turning into a battle of software algorithms. For whom the program works more optimally, for whom it is executed a millisecond faster - he also earns a couple billion dollars more. This is where the art of programming is converted into money at the maximum rate.
Interestingly, the recent scandal with the Russian programmer Goldman Sachs is from the same opera. It is this company that is considered the main "schemer" of superfast trading. Therefore, the theft of software codes from the company is a matter of US national security, because the Goldman Sachs software is de facto used for manipulation on the exchange.
')
The effect of the devastating article in the NY Times was not long in coming. Just a few days later, Democratic Party Senator Charles Schumer asked the SEC to formally ban the practice of ultra-high-speed trading, because it contradicts the principles of the free market.
It should be noted that no legal obstacles can stop the trend, according to which exchange trading is rapidly turning into a battle of software algorithms. For whom the program works more optimally, for whom it is executed a millisecond faster - he also earns a couple billion dollars more. This is where the art of programming is converted into money at the maximum rate.
Source: https://habr.com/ru/post/65618/
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