Hope, FPGA’s, High Frequency Trading and the New Market Access Rules
Hope, FPGA’s, High Frequency Trading and the New Market Access Rules hftreview.com
I recently became aware of an emerging practice most likely being implemented by clearing companies at the low end of the capitalization sprectrum offering a…
While it could be a somewhat rude implementation, I can’t really see the reason to be upset about it. In my opinion every trading venue should have flow control, algos can go out of control regardless if an FPGA is scrambling the data or not. If the software/hardware of the trading venue can’t handle this, it’s time to get something better, and if it’s OTC trading, then both parties can agree if the solution is acceptable or not.
If there is a real need for this type of design, then perhaps the proper solution would be to include fields in FIX that are easy to manipulate for the FPGA, some kind of ‘reject this message’ flag. and the HFT can get signals back that they are out of limit rather than thinking there is some kind of encoding error and the HFT box can take proper actions.
NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!