Datafeeds and auto-trading

[jmreeve]

Quite an interesting article on the changes that are happening to
data feeds due to the increase of program trading in the market.

http://www.wstonline.com/printableArticle/?doc_id=47900733&section=inDepth

 

[Strategic Trader]

miiliseconds in trading can be very expensive

 

[jmreeve]

miiliseconds in trading can be very expensive

Yes. currently looking into this.
Thinking of using comstock Xpress feed which claims average latency of 120ms
However, cannot afford a leased line and satellite puts the latency back up.

 

[TWI]

We have leased line to clearer who then has leased lines to the exchanges. Keeps latency low but often find problem is not in link but in exchange server being jammed up by auto-traders rapidly amending orders when the market gets volatile.

 

[jmreeve]

We have leased line to clearer who then has leased lines to the exchanges. Keeps latency low but often find problem is not in link but in exchange server being jammed up by auto-traders rapidly amending orders when the market gets volatile.

Do you know what sort of latency you are getting?

Eurex have bandwith limits to stop this sort of problem.
I heard LIFFE was thinking about introducting some restrictions to prevent abuse with the ever growing
tide of algorthmic trading.

 

[TWI]

I do not know the latency.
Eurex started fining people who did too much of the pull/replace volume there is a daily limit.
Liffe have claimed they would tackle it for a long time, but they have done nothing so far.

 

[jmreeve]

I guess there is a resistance to have curbs as the majority of it is due to large institutional brokers.

It is also a good way to help maintain the unlevel playing field as market access with consistent low milliseconds out of the reach of most private individuals.