A couple of Technology Trends within High-Frequency Trading

It was great to obtain back to typically the office following the Xmas break, you can forget cold turkey! Aiming plans for the forthcoming year is some sort of great possibility to seem at what typically the commentators are saying will be the trends of the New Year. The buzz in the Higher frequency Trading space is about the coming regulation and European Union MiFID two (Market in Economic Instruments Directive) within particular. I typically perceive regulation since a bad point, more work along with no gain, but we would not include the market fragmentation in Europe with out MiFID; which got destroyed the monopoly regarding country stock swaps. 45% of the particular FTSE 100 stocks and options are traded away the London Share Exchange. The Tabb Group, an agency, reckons HFT makes up 56% of most equities trades inside the US in addition to 38% in European countries. The trend could only go 1 way with even more market players having into the HFT style of stock trading.
Two technology tendencies to watch this particular 1 / 4
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Growth found in the market is fantastic news for us all inside the technology room but we will be also seeing advancements in the Very low Latency Networking space that will have an effect on the infrastructure patterns we are providing. The first is definitely Precision Time Protocol (IEEE 1588, PTP) in silicon upon network cards and even the second is usually purchase of Voltaire, controlled by approvals.
Just what PTP means intended for the Low Dormancy market.
Accurate description of latency arbitrage. Traders will know to micro-second how long their job changes take and will be able to see arbitrage opportunities. The guys will have to be able to get smarter which usually is good for marketplace efficiency.
Consultants who have built a company on deploying estimated trade times by inserting probes in addition to parallel processing runs will have to be able to amend their technique because the network side will always be producing accurate results, eventually!
The services of network nucleus by-pass acceleration can be able to quickly and basically demonstrate the advantages of their particular technology, making it easier to be able to sell the concept. That can argue together with figures that reliable that so the drop from 20ms to 9ms.
The other news at the end of last year was the purchase of Voltaire, the Infiniband structure vendor, by silicon manufacturer Mellanox, the only other key player within the Infiniband tech space. This specific consolidation of the market place will focus typically the attention on the particular furious Infiniband poems 10 Gigbait Ethernet, (10GbitE) debate. Seeing the vendors tossing stones at 1 another will probably be enjoyment but the Powerful Computing market is just right to help both technologies and even I think typically the High Frequency Trading market is going to do typically the same.

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