Wednesday, September 21, 2011

High Speed Trading breaks speed of light (allegedly)

Came across this at NanexHFT Breaks Speed-of-Light Barrier

According to theoretical physics, when the speed of light is surpassed, all sorts of weird stuff happens including, but not limited to, time warps. An explanation of time and velocity here at PhysLink.

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On September 15, 2011, beginning at 12:48:54.600, there was a time warp in the trading of Yahoo! (YHOO) stock. HFT has reached speeds faster than the speed-of-light, allowing time travel into the future. Up to 190 milliseconds into the future.... It all happened in just over one second of trading, the evidence buried under an avalanche of about 19,000 quotations and 3,000 individual trade executions. The facts of the matter are indisputable. Based on official exchange timestamps, there is unmistakable proof that YHOO trades were executed on quotes that didn't exist until 190 milliseconds later! 
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Of course there's the possibility of the timestamps screwing up or significant quote delays, which implicitly questions integrity of the exchanges...


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Does this mean there are far more delays than previously thought? Is there a delay every time we see an explosion of quotes in one stock? Because recently, that sort of thing happens all the time.

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