The new data centers appear to be listed in the greater NY area. http://www.nyse.com/press/1245839193594.html but that doesn't mean that there won't be closer places to the matching engines. From what I understand, everyone is on the SFTI ring. But some are closer to the physical location of the engine on the ring. For example, I am on the SFTI ring in Chicago, but I am a huge disavantage to someone colocated on th SFTI ring in NY by at least 35ms. I forget exactly where the matching engines are, but my recollection is that for example, the primary ISLD and ARCA mathing engines are in NYC. Some are in NJ. If you have the addresses, spit them out. I looked into this six months ago, but I don't remember the address(es). BTW, the MERC GLOBEX mathcing engines, for reasons of national security, only a handful people know where they are. But no one colocates there. They colocate in data centers that then connect to them.
Not at all. Again I may not be explaining myself well. All I am suggesting is that the matching engine be in a location neutral place where geography advantages are reduced. For example, in Chicago, it is nearly impossble to get a cage at 355 Cermak, where most people need to be to get very good access to the GLOBEX engine. If you moved the egine to say Schamburg, or somewhere with plenty of space, the price of colocation would go down because land is cheap. If you need more space, no problem, just build another football sized facility 100 feet away. It won't cost much and the land is plenty. Look, people with a locked in edge don't want to give it away. Let me give you a simple example, and there are many as markets went from pit to screens. The CBOE has a product that instutitions love, the SPX options pit. The exchange would love to try to move this pit to be screen traded as opposed to be pit traded. After all, it is 2009!!! It would generate that much more revenue for them. Every time a vote comes to see if the members want to move this pit to more hybrid or gawd forbid fully electronic, it gets voted down by the members. Why kill your golden goose? There is no room in that pit anymore for people that want to risk their good money trading it, and anything bigger and you are risking being in the bleachers at Wrigley Field. I don't want to do away with progress. On the contrary. I want to make progress an equal opportunity whether you are Goldman Sachs, or some five man firm. Let's duel in the market on trading ideas, not on how close you can be to a matching engine. Or at least allow as many new entrants to compete in this ultra-HFT space by removing distance as an obstacle for as many as possible, not as many as politically possible. Technology is supposed to be the great equalizer. Show me the money.
Bingo. This has nothing to do with fairness and everything to do with NYSE being in Schumer's district. What's the only venue not offering these orders?
Quote from milimabuse: milimabuse is a spammer. http://www.elitetrader.com/vb/showthread.php?s=&postid=2513363#post2513363
this is why YOU CAN'T TRADE the market, u may get lucky but u will get burned bad at the end. THE ONLY WAY a retail investor like you and me can make money is to pick a company/industry you understand......particular best in the bottom trough of a market.....and go all in and go all long.
Who's fairy tale is that? It's never been true, never will be true, and more importantly, is not supposed to be true.
Tough shit. Physical location as an advantage is a reality in all kinds of businesses. Deal with it, or do something else.
One thing about HFT is why do they need to do it in the first place? Can't all of those super geniuses use TA or fundamental analysis to make sufficient profits? It would be interesting to see how their normal traders do compared to the HFT computers. We could be approaching a real John Henry moment in trading.