51 posts • joined Tuesday 14th July 2009 11:08 GMT
Re: If I recall correctly
"I don't remember exactly how, but essentially putting in massive buy and sell orders that you have no intention of fulfilling is a way to identify areas of weakness that can be exploited for quick profits."
The jargon term for this is flash orders (orders that only exist for milliseconds well away from the spread) , the intention being to either overwhelm the trading systems of other participants with data volume, or confuse their algorithms into thinking the markets is behaving differently than reality. In many jurisdictions flash orders are deemed a form of market manipulation and therefore banned.
Since flash order costs the exchange money in terms of having to build infrastructure able to handle this huge volume of orders that will never match, hence no commission for the exchange, most have introduced punitive charges of excessive volumes of unmatched trades. This mostly killed this behavior off before the regulators for involved.
Re: Better Idea
"Over that time, markets have evolved dramatically through the processing power of today’s technology – with execution times measured in milliseconds and microseconds – as well as widespread retail investor participation in the markets, decimalisation, the exponential growth of daily trading volume, and the for-profit status of the securities exchanges."
Most people raging against HFT have a picture of electronic trading that is somewhat unrelated with reality.
The speed of transaction has been driven up by many factors that have little do with people making money from micro price movements. Admittedly HFT has seen a lot of purely parasitic trading in the past, however through regulation and exchanges changing their pricing structures to discourage huge volumes of un-matched trades being blasted through their infrastructure, this activity has declined sharply.
The move away from open out-cry exchanges (loud wide-boys in loud jackets trading by shouting and hand signals) to electronic trading had allowed more transactions to be completed per trading day. This has allowed decimalization of the market, so before when shares or instruments could only be trading in large lots, typically 100,000 of whatever you were trading.
Trades can now be performed for any volume and matched against a counter-party directly as a partial fill. This has been made possible by the speed and accuracy of electronic systems.
By removing the need to have chains of brokers to aggregate investor traders in lots, this makes it practical to facilitate direct market participation by small and retail investors.
Before if I wanted to invest in something, I would by unlikely to afford a standard lot (100,000) of whatever, so I would go to a broker, they would look at their house book, if they had the shares in their inventory they would sell me a number of shares at a price that results in a profit for them, otherwise they would buy a lot on the market and sell me the required quantity, they would of course change a premium on their purchase price to cover their commission and risk (they would be left holding the remaining shares).
Also instead of a few national exchanges there now a multitude of exchanges, MTFs and ECNs (all really the same thing at a basic level, but there are different regulatory rules).
These private exchanges need liquidity for attract customers, so they bring in traders called Market Makers, these folks are obliged to provide a bid/ask price within a certain spread for all the instruments they are contracted to 'make the market' for, an exchange will have multiple market makers all competing against each other for trader business so the real time competition between market makers has. dramatically reduced bid/ask spreads.
Most of the the responsibility for the credit crunch was down to misrepresentation of their credit risk by banks, and had nothing to do with electronic trading, high frequency or otherwise. Of course HFT is not generally understood, so it makes a good scape goat.
Banks begrudgingly accept it is there and they have no choice. HFT has already resulted in significant removal of middle men from the trading business, and threatens the banks oligopoly by allowing greater market participation.
Politicians always need something to blame other than themselves, so rather than admit to massive regulatory failure in credit markets, they would rather blame something few people understand.
In my view the benefits of high performance electronic trading out weight the downsides.
I await your down-votes.
Re: Better Idea
Front running and flash orders are already illegal.
HFT covers many strategies. I agree some seem to offer little benefit other than to the trader employing them, such as momentum trading where instruments are traded rapidly to take advantage of a moving price. However the gains today are a lot smaller than people think, often not covering the infrastructure costs required to execute them.
However many other HFT strategies, such as rapid hedging and inter-venue trading have been shown to reduce risk and improve prices.
Electronic trading is here to stay, I agree it needs to be regulated, but let’s not throw the baby about with the bath water.
Re: Fixed it for you
"as well as widespread retail investor participation in the markets,
decimalisation decriminalization, the exponential growth of daily trading volume"
Are you saying trading in small volumes should be illegal, that if you can't afford 10,000 or 100,000 shares you have no business trading directly on the market, and should be forced to go through a small number of brokers?
Office render farm
A friend at a games company many moons back once told me they had an idea, why not give everyone in the office a high(ish) powered workstation and distribute the render farm through the office using unused cycles. That way everyone gets a decent workstation and they build the render farm for cheap.
They deployed said solution, one problem though, heat. Lots of heat, more than the feeble office aircon could handle, resulting in a lot of sweaty meat bags.
Re: Not convinced
Lizards can't cry, but I hear crocodiles cry often.
Re: 10 Types of bosses
Not sure if The Prince has claim to be the first, I have had a few bosses rather fond of a management guide written around 512BC by some Chinese dude called Sun Tzu.
They tended to be mainly type 5/9/10 bosses, so I guess they did not take a lot of it in.
IMO a blunt knife is more dangerous than a sharp one. With a blunt knife you have to use more force and have less control. But I don't have kids to worry about.
I use a ceramic wheel sharpener with Global knives, the type you put a bit of water in and it works great.
I don't use a dishwasher on them, but when I wash them I NEVER let go of the handle, cos having that blade lurking hidden in the washing up would be stupid.
Having once experienced the excessive fruity flatulence resulting of drinking some homebrew that had not quite finished fermenting, I would expect there to be somewhat of an anti-social side they failed to mention!
Bull Run & Edgehill - Civil War?
Interesting choice of code names. Bull Run, major early battle of American Civil War. Edgehill, major early battle of English Civil War.
I think that gives us some insight into whom our respective intellegence agency perceive as the enemy.
Quite the opposite, if DPI is mandated on all connections, then the connection may only be as fast as the DPI equipment can capture, analyse and store the traffic data.
Since DPI equipment costs orders of magnitude more than switch/router or even IP filtering equipment (which would be used if the survellance were targeted on a small subsection rather than everybody).
The the cost of the DPI equipment will determine end user speed, trapping the UK in the slow lane.
"The most amazing achievement of the computer software industry is its continuing cancellation of the steady and staggering gains made by the computer hardware industry. "
— Henry Petroski
Re: Not there, James
Indeed. You can use most enterprise switches as tap aggregators (by using VLANs (or QinQ VLANS) with MAC Learning disabled). Which is great of you don't need precision captures.
What makes these a bit special is the ability of the switch at add a timestamp shim to the packet so you can work our how many nanoseconds it spent in the switch. The hardware to do this is part of the switch ASIC and is required to support Precision Time Protocol (IEEE 1583).
Re: UK businesses may have an unduly negative attitude
That sums up the general concern with outsourcing.
When you do something in house, your primary concern is value.
An outsource provider's primary concerns are margin and volume.
Companies don't really pay tax, people do. Taxing companies is simply indirect way of taxing customers or shareholders.
What Adam Smith said about tax :-
The Four Cannons of Taxation.
Equality – Tax payments should be proportional to income
Certainty – Tax liabilities should be clear and certain
Convenience of payment – Taxes should be collected at a time and in a manner convenient for taxpayer
Economy of collection – Taxes should not be expensive to collect.
Corporation Tax does not fair too well on any of those.
Brass Eye fans?
If it moves tax it..
"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it."
- Ronald Reagan
They probably would have sold faster if Samsung did not cock up the manufacture resulting in a delay of the dark blue model, launching only with the white model, a lot of people (like me) waited for dark blue one.
I do the same, i have a trash password for stuff that does not matter that much (can't loose money or harm my employment / reputation). But its really important to have a unqiue email password, once someone can login to your email they can reset all your other passwords that use that email account.
Re: Just more unecessary junk packaging
Most of use a equiped with a bio-molecular analyser (sampling intake middle of face), what is wrong with smell-by-date?
I was given some very good advice regarding redundancy from a friend, he said same as you, to use two circulation/filter pumps in parrallel and use multiple but smaller heaters,rather than a single big one. that way if one gets stuck off, or worse, stuck on the tank does not freeze/cook.
Yep, that was the sort of building block I would be using. I intend to use as much stuff that has already been done as I can possibly get away with. Like using rrdtool for the graphs.
Having meationed relays and things, it is my intention that at least for phase-1 the system is purely monitoring, and will not control anything (I will leave that to timers and manual intervention). As I don't want to have my code hanging like a sword of Democleas over the innocent occupants of my aquarium.
Once I am happy it works and may think about giving it control.
Re: Fish nerd + tech head = fish head?
A horror story from a friend with a Roomba comes to mind. Not great for with pets.
Freshly laid steaming runny dog poo in middle of living room carpet + roomba 90min floor sweap = not the best thing to come home.
I have long been planning a aquarium (tropical marine, mainly invertebrates but with a few fish), but have wanted to do it well (large tank, good lights etc..) so this represents quite an investment of both time and money. The latter being why I have not started already!. However now I am in a position to kick it off.
Being of a somewhat geeky nature, remote alerting and graphs (oh hell yeah! lots of graphs!) are kind of an essential for me. But looking at the market for monitoring equipment, it is very expensive and rather limited. Like the article states, loads of clever monitoring but no good if its flashing away in obscurity on an LCD screen in a cupboard.
So I intend to roll my own, probably a embedded Linux box, with analog to digital hardware to connect probes (flow meters, pH, EC, DOC etc), and some relays to control pumps, lights etc.
There are a few of these sorts of projects already out there, but mainly to control hydroponics systems.
But given the number of potential contributors, I think this would make a good open source hardware/software project.
Hopefully next year I will have stopped talking about it have something to show.
Of course something like this is going to attract a lot of attention just after launch, but it would be wasteful to scale a permanent platform for the initial load.
Of course the best option would be to able to dynamically assign hardware to services based on predicted and/or actual load,
No central database = network of mandated privately held databases accessible in real-time (net result, same damn thing)
Strong safeguards (today) = burdensome red tape (tomorrow)
Serious Crime = All crime is serious, otherwise it would be be crime, would it?
Paedos, Terrorists and major criminals = whatever floats ya boat to get it passed, we will widen the scope later.
This would all seem to be deeply cynical and paranoid, except when you take into account history on various other laws ( RIPA, Terrorism Act, POCA etc etc...)
"The architects wanted the windows to open. Jobs said no. He had never liked the idea of people being able to open things. ‘That would just allow people to screw things up.’"
So presumably the doors would be sealed shut too, would certainly help stop those pesky people interfering.
If this was RIPE not ARIN the address range would revert to the registry when the company ceased. RIPE's terms prohibit sale of IP space, a very sensible policy to prevent land grabs IMO.
Understanding the problem being solved, is the problem.
From what I have seen the massive 'IT' projects that fail are also massive business process change projects.
Applying technology to an broken process designed around a poorly understood problem only makes matters worse, and costs us taxpayers a shed load in the process.
They need to understand that techonology is not a magic bullet, and that getting the fundamental business right is of the utmost importance.
I know the review included a review of all telco services.
The number of billed services that were not being used by anyone was shocking. In one case I was told of, the rental of a PBX and phones was being paid 10 years after building had been demolished, contract index linked to inflation of course.
Offices move, things get upgraded, but no one cancelled the old contract with the telco, and they don't tend to remind you. A big part of the re-negotiations was was getting fully itemised billing from the telcos, so that they could see what they were paying for.
Actually you don't need to recompile the browser to intercept SSL wrapped sessions.
Just install your own Trusted Certificate Authority certificate on the employee's machines.
SSL session between the browser and the proxy uses a made up on the fly cert for www,whateversite.com and the browser trusts it as a valid cert because it has been signed by BOFHsign CA which it trusts :)
So when at work worth checking actually who signed that cert you are trusting by clicking on that padlock :)
politicians and perception
It is far more important to politicians (the people deciding where to spend to money) that they are perceived to be doing the right thing, rather than actually doing the right thing.
Ask the average voter what green is and they will think sunshine and windmills, not nuclear technology, whatever the reality.
Wind, solar, efficiency, demand management, storage (thermal, pumped, etc), nuclear all have something to contribute, but overly focusing on one solution will not work.
PS: You can also add China to the list of countries seriously pursuing thorium reactor technology, they know their energy demands are only going to go in one direction.
Big Business like Regulation
A lot of regulation is brought in on the back of lobbying / advice from consultations with big companies (politicians tend to like help big business, you never know when a speech needs doing or non-exec position might come up you know...)
Large companies like it because hiring a compliance team of say half a dozen it nothing in the grand scheme of things to them, but it effectively pushes small upstarts out of the business. For a good example look at what regulation the FSA has been putting forward.
They seem to forget that the 'rewards' are taxpayer funded, so are in effect a rebate on a fine already paid by everyone.
Minus the huge admin costs of course.
Data Loss Prevention?
I would have hoped that an organisation responsible for a great deal of sensitive information, some of which could put peoples lives at risk, had some kind of DLP system deployed on their email system. It’s quite simple to check outgoing email for tag like 'NOT FOR EXTERNAL DISTRIBUTION’, and hold it for authorisation before sending to external addresses. Such measures are becoming increasingly common in business where fines, loss of business and reputation are at stake.
Mainly UKIP, they were either against democratic scrutiny, or weren’t really paying attention. I doubt they are representing anyone, just there to pick up cheques.
William (The Earl of) DARTMOUTH - UK (UK Independence Party)
John Stuart AGNEW - UK (UK Independence Party)
Marta ANDREASEN - UK (UK Independence Party)
Gerard BATTEN - UK (UK Independence Party)
Louis BONTES - NL (Partij voor de Vrijheid)
John BUFTON - UK (UK Independence Party)
Trevor COLMAN - UK (UK Independence Party)
Nigel FARAGE - UK (UK Independence Party)
Mike NATTRASS - UK (UK Independence Party)
Paul NUTTALL - UK (UK Independence Party)
Nicole SINCLAIRE - UK (UK Independence Party)
Laurence J.A.J. STASSEN - NL (Partij voor de Vrijheid)
Daniël van der STOEP - NL (Partij voor de Vrijheid)
Hmm.. Seems the main block of votes against (supporting the commission in the secrecy) was from the UK... UKIP in fact.
I wonder if they knew what they where voting for, our they were just voting the opposite way to everyone else.. cos they're rebels.. yeaaah!
only the most serious cases?
"hardly anybody, other than the most serious and egregious recidivistic offenders".
How can anyone with a memory trust a statement like this, especially from this government. We have heard it all before.
Terrorism Act 2000 was only to be used in the most serious of causes to protect the public against terrible harm, we find section 44 used hundreds of times a day, against ordinary people going about their business (especially if armed with a camera!)
Regulation of Interceptory Power Act (RIPA) 2000, another counter terrorism measure, now routinely (ab)used by local councils for trivial offences
Proceeds of Crime Act 2002, which grants to power to confiscate assets unless the accused any prove they were not "the proceeds of unlawful conduct or intended for use in such conduct.", related criminal conviction not necessary. Only to be used against the Mr. Bigs of the criminal world, now after repeated extensions (local councils soon to gain powers) and reductions in the minimum threshold (£10,000 (2002) to £5,000 (2004) and now to £1,000 in 2006, it can be applied to just about anyone.
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