No. of Recommendations: 0
warrl wrote:
The OP stated a rule of 50 milliseconds or until executed. If you place a bid for 100 shares and actually buy 100 shares, that bid is executed and you have no further obligation to buy shares.

Ahhhhh, okay, my mistake...forget what I said then. I totally misread that while trying to speed read through 100 posts in 15 minutes.

Quotes with time minimum expiration periods would still be very difficult to coordinate.

The quote stuffing part in the OP was nonsense. SIAC (the people who manage the CTS/CQS feeds) had no capacity problems even at the peak volume on May 6th. Trust me, these systems are designed to handle millions of messages per second. Plus, it's a disadvantage to the trader to stuff quotes.

If any exchange doesn't have the capacity to "throttle" messages on a particular port (i.e. a customer connection), then they have really crappy software. An algorithm that's gone haywire could otherwise bring an exchange to its knees. I think this may have happened to NYSE ARCA a couple of years ago, but I can't find the story right now.

And let's not forget about all of the major problems during the crash of 1929 because the ticker was running hours behind. So it's not like these are new HFT-related issues. They are timeless market issues when millions of people suddenly decide to panic.

Rimpy
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.