On 3/17/21 2:12 PM, Lux, Jim wrote:
> I'm surprised HF would be used - I've heard of old microwave links being
> reconstituted, but HF is interesting. HF trading usually focuses on
> getting to the computers in NY area. I suppose you could do that on a
> skywave path "sometimes".
The basic premise is that certain things are traded in Chicago, mostly
derivatives and futures, but the industries relying on these are traded in NY
(NJ).
Say you're tracking lean pork futures and the product spikes due to some
flooding or swine flu/etc. Well if you're able to know about this several
milliseconds before NY where HRL is listed on the NYSE, you can then sell
their stock before the general market knows about it.
The links between NY and Chicago are all fiber, where light speed is about .6
that of RF. The same could be applied to HF paths, but HF has it's own
issues. Getting to London is a major goal in this, as you can't build
microwave over the ocean. Currently the best path to London over fiber is
Hibernia Express, a cable path laid directly to London from Halifax. This
shaved about 10 ms off the route and allowed HFT to make millions. HF could
do the same again, and open up Asian markets too.
It's fascinating stuff.
--
Bryan Fields
727-409-1194 - Voice
http://bryanfields.net
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