mike.
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So any of you that have read the book by Michael lewis "Flash Boys" will be vaguely familiar with the main character Brad Katsuyama, Any of you that haven't, well here's a brief description....
Brad was a trader in the royal bank of Canada, to cut a long story short he identified that he was being " front run" by HFT computers when he was trying to buy stock. His analysis led him to understand that he was dealing with micro seconds ( 1 millionth of a second ) as to whether he bought or lost the stock at the offered price. He entered into a quest to fight back at the HFT and also the stock exchanges that were selling them the co-proximity space. His idea was to create a whole new stock exchange which was to be a level playing field for all, He and his team devised that coiling 35 miles of fiber cable in a box and placing it at the entry point of his exchange would create a 350 microsecond delay, enough to stop the HFT's front running orders.... and it worked.
Though regulation's stopped him becoming an exchange for many years he continued to operate as a "dark pool" for certain banks, hedge funds etc..
In june this year his application was approved by the SEC to become a fully fledged stock exchange...A fantastic story of one mans quest for fairness in the markets..
http://www.theverge.com/2016/6/17/11957258/iex-sec-approves-stock-exchange
Brad was a trader in the royal bank of Canada, to cut a long story short he identified that he was being " front run" by HFT computers when he was trying to buy stock. His analysis led him to understand that he was dealing with micro seconds ( 1 millionth of a second ) as to whether he bought or lost the stock at the offered price. He entered into a quest to fight back at the HFT and also the stock exchanges that were selling them the co-proximity space. His idea was to create a whole new stock exchange which was to be a level playing field for all, He and his team devised that coiling 35 miles of fiber cable in a box and placing it at the entry point of his exchange would create a 350 microsecond delay, enough to stop the HFT's front running orders.... and it worked.
Though regulation's stopped him becoming an exchange for many years he continued to operate as a "dark pool" for certain banks, hedge funds etc..
In june this year his application was approved by the SEC to become a fully fledged stock exchange...A fantastic story of one mans quest for fairness in the markets..
http://www.theverge.com/2016/6/17/11957258/iex-sec-approves-stock-exchange
