[time-nuts] nanoseconds in the news

Brendan Minish ei6iz.brendan at gmail.com
Sun Feb 19 00:37:10 UTC 2012

All a bit off topic but.. 

Milliseconds are now worth a great deal.

In 2010 one large investment bank valued 1 additional msec of latency
between major financial markets at $120 Million per year.

This is in turn driving a lot of new fibre projects along new, shorter
great circle routes with the side effects of bringing long haul fibre to
new places and driving down prices on established routes.

These days the Telecomms industry trend is to quote RTT latency in msec
to 2 decimal places 

Some recent projects of interest in this regard are. 

(landing in My end of Ireland, due our geographical advantage ;-) 


Tokyo  London (& NY)
Which will better the current best overland route 

Chicago - NY 
Which in turn may yet be considerably bettered by Wireless Point to
point (at of course much, much lower capacity and greater cost than
Optical Fibre )

NY - Sao Paolo 

Quite apart from better optimised telecomms routes High frequency
trading applications are moving to FPGA's for faster transaction speeds 

Like it or not the speed of light is becoming the upper limit
here's a rather interesting paper that analyses the best locations for
trading between markets based on the optimum low latency routes being
Many of these routes are in the process of being built.


On Fri, 2012-02-17 at 13:14 -0800, Rex wrote:
> John,
> I agree with what you have said about the markets causing bad effects on 
> society because the focus is all short-term, but you are talking about 
> effects on the human time scale. HFT is orders of magnitude faster and 
> more insane.
> I saved two links from after the time of the 2010 "flash crash" of the 
> stock market. In addition to some analysis, they both show amazing 
> graphics of what the trading algorithms looked like on the actual market 
> activity.
> http://www.nanex.net/20100506/FlashCrashAnalysis_Intro.html
> http://www.nanex.net/FlashCrash/CCircleDay.html
> On 2/16/2012 2:45 PM, J. Forster wrote:
> > Frankly, I think the rapidity of the financial system is not a good thing.
> > It encourages the kind of speculation on Wall Street that more properly
> > belongs in Las Vegas.
> >
> > It has bred the demands for ever increasing quarter-over-quarter results
> > that result in cooking of the books and so on that deters long-range
> > planning and thinkingt.
> >
> > YMMV,
> >
> > -John
> >
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Brendan EI6IZ 

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