Today’s Wall Street is run by quantitative analysts who write the algorithms that run on the supercomputers that make the actual trades, using super high speed network connections to exchanges. While the new system has unquestionably enriched some, the question becomes: Has it benefited the rest of us?
The NASDAQ OMX group and Amazon Web Services have partnered to develop a cloud platform for financial institutions.
Errant HFT algorithm costs firm $440 million.
HPC cluster maker Appro has unveiled the HF1 server, a purpose-built box aimed at the high frequency trading business. The new server incorporates overclocked Intel Xeon “Westmere” CPUs and a self-contained liquid cooling system to deliver the best dual-socket performance this side of a tricked-out gaming machine. Although the risky design isn’t geared for mainstream HPC users, for high frequency traders, it may be just the kind of gamble they are comfortable with.
High frequency trading (HFT), often called algorithmic or low latency trading, relies on fast computers and even faster networks to execute trades in sub-second and even sub-millisecond timeframes. It has generated massive profits for those firms skilled enough to handle the complexities of the software and hardware. As such, it has become the dominant method for equity trading in the US, but it’s popularity is expanding worldwide, especially Asia. HPCwire got the opportunity to ask Chuck Chon, chief technology officer of SBI Japannext, about the HFT business in Japan.
The bar for what qualifies as a fast connection or “low latency” networking has always been higher in finance than in other areas of corporate networking. It’s never been quite this high, however.
Analysts uncover evidence of high frequency trading shenanigans.
Investigators struggle to ascertain role of computerized trading in stock market plunge.
Role of high frequency trading in market crash still unclear.
Newcomer Arista Networks has found a comfortable home for its high performance Ethernet switches on Wall Street. Company founder Andy Bechtolsheim explains why Arista’s low latency switches are an especially good fit for the lucrative algorithmic trading business.