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It's Official: HFT Breaks Speed-of-Light Barrier, Sets Trading Speed World Record

Tyler Durden's picture




 

Submitted by Nanex

HFT Breaks Speed-of-Light Barrier, Sets Trading Speed World Record

Adds a new unit of time measurement to the lexicon: fantaseconds.

On September 15, 2011, beginning at 12:48:54.600, there was a time warp in the trading of Yahoo! (YHOO) stock. HFT has reached speeds faster than time itself. Up to 190 milliseconds into the future, or 0.19 fantaseconds is the record so far. It all happened in just over one second of trading, the evidence buried under an avalanche of about 19,000 quotations and 3,000 individual trade executions. The facts of the matter are indisputable. Based on official exchange timestamps, there is unmistakable proof that YHOO trades were executed on quotes that didn't exist until 190 milliseconds later!

Millions of traders depend on the accuracy of exchange timestamps -- especially after bad timestamps were found to be a key factor in the disastrous market crash known as the flash crash of May 2010. We are confident the exchange timestamp problem has been completely addressed by now: the SEC would have made sure of it. It's not like adding accurate timestamps is rocket science, or even considered a difficult problem. Based on recent marketing materials, the exchanges are practically experts on measuring time. And with hundreds of millions in annual data feed subscriptions paid by the same subscribers expecting quotes with accurate timestamps, there is no shortage of funds to make it happen.

So we can be certain the exchange timestamps were accurate, which means that HFT has truly entered the era of the fantasecond.

But let us suppose for a moment that in reality, quotes became queued (delayed) and were timestamped after leaving this queue. After detailed analysis of the UQDF data feed (see chart below) that transmits this information to traders, we find that the traffic rate for both the total of all output lines and specifically multicast line #6 which carries YHOO, were both well below peak rates. So it doesn't appear there were any capacity problems which have always been an excellent indication of feed delay.

This raises a few thorny questions.

Does this mean there are far more delays than we previously thought? Is there a delay every time we see an explosion of quotes in one stock? Because that sort of thing happens. All the time.

Regulation NMS is pretty clear that direct exchange feeds are prohibited from having a speed advantage over the UQDF data feed. UQDF computes the NBBO after all. So how does one ensure trade-through price protection if the price being protected hasn't even occurred yet? The NBBO lies at the heart of Regulation NMS (Reg. NMS) and is the key concept that assures investors are getting the best price when buying or selling stocks.

Maybe it would be better to just fantasize about fantaseconds after all.

The first chart is a 250 ms interval chart of the NBBO in YHOO which is plotted as vertical lines and colored red if the NBBO was crossed during the interval, yellow if it was locked, and gray if it was normal. The implied quote rate is shown as a histogram at the bottom -- and scaled in quotes/second. We will focus on the time shown in the black circle.

Zoomed in detail of above chart in 2 millisecond intervals.

The next chart is the same as the one above, but includes trade executions which are plotted as dots or squares and are sized according to trade size. Each reporting exchange uses a unique color and shape. An exchange code table appears at the end of this page. What is unusual about this chart is that trades are reported ahead of quotes. The dots/squares should trail after the quotes. Up to the point in time that is labeled "A", and after the point labeled "B", trades and quotes were in sync. Between these two points is where the quote timestamps began falling behind.

By plotting quotes and trades from just one of the active exchanges, we can easily measure how far in time the trade messages came before the quotes and therefore estimate the minimum amount of time the quotes were delayed. Below is a 1 millisecond interval chart of YHOO showing only Nasdaq trades (black circles) and the Nasdaq bid-ask spread (gray vertical bars).


Exchange Code Legend:

1 NQEX Nasdaq Exchange
4 AMEX American Stock Exchange
7 PACF NYSE ARCA
8 CINC National Stock Exchange
9 PHIL Philidelphia Stock Exchange
11 BOST Boston Stock/Options Exchange
57 NQNX NSX Trade Reporting Facility
59 NTRF NYSE Trade Reporting Facility
60 BATS BATS Trading
63 BATY BATS Y Exchange
64 EDGE Direct Edge A
65 EDGX Direct Edge X

 


The chart below shows quote message rates for UQDF and multicast line #6 which is the line that carries YHOO quotes. The time of the event is shown at the lower left. Although traffic from YHOO was a significant percentage of all traffic on UQDF, it was still not high enough to indicate any problems. Note that the surge on the right side of the chart is much higher, and there weren't any known problems at that time in YHOO.

 

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Tue, 09/20/2011 - 11:05 | 1688776 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

liquidity biatches!

No crime to see here.

Tue, 09/20/2011 - 11:07 | 1688781 markmotive
markmotive's picture

Faster than time itself? Did I read that right?

The average man is f@$!ed

Tue, 09/20/2011 - 11:10 | 1688797 Falcon15
Falcon15's picture

You read that right. Prepapre the market for LUDICROUS SPEED!

They've gone to PLAID!

http://www.youtube.com/watch?v=mk7VWcuVOf0

Tue, 09/20/2011 - 11:16 | 1688844 fuu
fuu's picture

We are going to need to drag out our copies of "Time Traveler's Handbook of 1001 Tense Formations "

http://pages.cs.wisc.edu/~param/quotes/guide.html

Tue, 09/20/2011 - 11:23 | 1688891 slewie the pi-rat
slewie the pi-rat's picture

beam us up, tyler

Tue, 09/20/2011 - 11:56 | 1689010 Pladizow
Pladizow's picture

Doc Brown would be proud!

Tue, 09/20/2011 - 12:06 | 1689050 Ahmeexnal
Ahmeexnal's picture

back to the future.

Tue, 09/20/2011 - 11:48 | 1688991 Drag Racer
Drag Racer's picture

'pre-crime' has now officially been defined.

Tue, 09/20/2011 - 12:01 | 1688867 Manthong
Manthong's picture

So.. who really runs Dodge when the law is shoot first, ask questions later?

Tue, 09/20/2011 - 11:33 | 1688934 Johnny Yuma
Johnny Yuma's picture

"Prepapre the market for LUDICROUS SPEED!" My brains are going into my feet! 

Tue, 09/20/2011 - 11:54 | 1689007 NotApplicable
NotApplicable's picture

Front-running has entered a whole new dimension.

Question is, are either side of these transactions even real, or is an HFTbot trying to generate the appearance of a real market? At this point, they could be trying to replace the casino with a mere facade.

If Cramer starts getting his calls right, then it's time to get suspicious.

Tue, 09/20/2011 - 11:38 | 1688956 bankruptcylawyer
bankruptcylawyer's picture

smokem if you got'em

Tue, 09/20/2011 - 11:41 | 1688972 Nascent_Variable
Nascent_Variable's picture

Ye cannae change the laws of physics!

Tue, 09/20/2011 - 11:50 | 1688994 newworldorder
newworldorder's picture

Karnac the maginificent has risen from the grave and is predicting answers to questions not asked.

Thu, 09/22/2011 - 16:58 | 1698863 gojam
gojam's picture

Business @ the Speed of Thought - Bill Gates.

Comment @ the Speed of Ignorance - gojam

 

Tue, 09/20/2011 - 13:00 | 1689294 New_Meat
New_Meat's picture

"Ye cannae change the laws of physics!"

It's just scientific consensus.

- Ned

Tue, 09/20/2011 - 13:26 | 1689383 Fanatic
Fanatic's picture

Laws of physics are just "tradition". :-P

Tue, 09/20/2011 - 15:03 | 1689728 Cathartes Aura
Cathartes Aura's picture

scientific consensus.

couldn't give you a + vote "up there" New_Meat, so have one here! 

and to the consensus, I'll add "paid for" since most science is funded. . . outcome decided, ayups!

Tue, 09/20/2011 - 16:14 | 1689981 The4thStooge
The4thStooge's picture

It's the Large Hadron Collider. They can bend the laws of time and space to place trades in the future by observing the wave function BEFORE it collapses...

Tue, 09/20/2011 - 11:47 | 1688990 bankruptcylawyer
bankruptcylawyer's picture

whats' a matter colonel sanders, chicken?

 

Tue, 09/20/2011 - 12:14 | 1689086 Bruce Flea
Bruce Flea's picture

Now. You're looking at now, sir. Everything that happens now, is happening now.

Tue, 09/20/2011 - 11:17 | 1688850 Translational Lift
Translational Lift's picture

The vacuum tubes are not only reading the headlines but now predicting them............

Tue, 09/20/2011 - 11:19 | 1688866 scatterbrains
scatterbrains's picture

so let me see if I got this right.. by the time my limit order goes through the HFT bots have traded, gone to lunch, came back traded some more, the closing bell rang and they all left the building and I never got filled ?

 

Tue, 09/20/2011 - 11:30 | 1688915 Dr. Richard Head
Dr. Richard Head's picture

And you too can retire through a well-diversified 401(k) equity investment strategy.  Just shift your pre-tax DOHllars into the account, your employer will match your contributions, and you too will live in the lap of luxury during your golden years.  Buy and hold.  It's so easy a computer can do it.  HAHAHAHAHAHAAAA

Tue, 09/20/2011 - 11:35 | 1688928 slewie the pi-rat
slewie the pi-rat's picture

that's the same thing that happened to me!
then i changed the limit, and it got filled...
...fast, too!

now that the SEC has gotten into studying these hi-freek algoz, anything can happen

once tyler, via art_C, went into the future generations wanting to stay unborn, the SEC simply HAD to try to protect their future midgets!

Tue, 09/20/2011 - 11:51 | 1688997 Chaffinch
Chaffinch's picture

Yep. And you might even get stopped out at a price that hasn't happened yet, and when it does happen it will be gone so fast that you cannot do anything about it.

Tue, 09/20/2011 - 12:02 | 1689031 Debt-Penitent
Debt-Penitent's picture

There seems to be a crack in the porcelin of what the MSM has been touting.

Obviously, the bids are being interupted, somewhere along the line allowing the HFTs to be faster than the time stamps are allocated.

Question:  How many coincidences does it take to manifest a conspiracy?

Tue, 09/20/2011 - 12:48 | 1689246 fuu
fuu's picture

3?

Tue, 09/20/2011 - 11:21 | 1688876 johnQpublic
johnQpublic's picture

looks to me like the webbot project is spot on

seeing the future...not just for clairvoyent humans anymore

Tue, 09/20/2011 - 11:31 | 1688921 TheFourthStooge-ing
Tue, 09/20/2011 - 12:19 | 1689080 tip e. canoe
tip e. canoe's picture

i see you also got the new HPH report hot off the presses and read through to the conclusion.   was just thinking the same thing.   uncanny, huh?    what's really odd is that it was scheduled to be released tonight and he released it last night instead.   or maybe it was tonight last night and today is yesterday tomorrow?

Tue, 09/20/2011 - 11:30 | 1688916 CosmicBuddha
CosmicBuddha's picture

They must have employed tachyon pulses rather than light pulses to communicate the information, either that or they are swindling fraudsters.

 

http://en.wikipedia.org/wiki/Tachyon

Tue, 09/20/2011 - 11:43 | 1688976 DeadFred
DeadFred's picture

At the nanosecond and shorter level time starts behaving as a probability function so these bots may actually be able to react with future bids and offers but I'm at a loss to see how the the time stamp can be applied without collapsing the wave. Consequently I'm going with the 'swindling fraudsters' option.

Tue, 09/20/2011 - 12:18 | 1689108 Nascent_Variable
Nascent_Variable's picture

Perhaps if we fire an inverse tachyon pulse into the HFT servers, we may be able to prevent the imminent crash.

Tue, 09/20/2011 - 11:34 | 1688939 madgstrader
madgstrader's picture

does that mean they can sell the stock a few fanta seconds before they buy it? wow, neat trick

Tue, 09/20/2011 - 11:35 | 1688940 madgstrader
madgstrader's picture

2x post deleted sorry

Tue, 09/20/2011 - 11:58 | 1689020 SoCalBusted
Tue, 09/20/2011 - 12:22 | 1689126 Don Birnam
Don Birnam's picture

Jim Kirk invested with one of these HFT shops with less than adequate results. Algorithmic error precipitated a backwardation of trade execution. Stale trades -- going back to the late 17th Century, and the London 'Change, as it were. 

The SEC is still investigating, but progress is slow, due to the inability to depose the Cromwellian stockjobbbers in question.

http://cdn.argenteam.net/images/series/star-trek/s3/e23/323-big.jpg

Tue, 09/20/2011 - 15:51 | 1689895 Ponzi Unit
Ponzi Unit's picture

Hey Don, nice avatar -- Lost Weekend!

Tue, 09/20/2011 - 12:28 | 1689152 Azannoth
Azannoth's picture

We're deep into quantum physics here, it is very possible for mass less object to break the speed of light, electrons in the 'vacuum tubes' are mass less (according to modern physics) so  trading faster than the speed of light is theoretically possible

Tue, 09/20/2011 - 11:08 | 1688806 jdelano
jdelano's picture

It's like when Butch found Marty's sports almanac....

Tue, 09/20/2011 - 11:34 | 1688941 catacl1sm
catacl1sm's picture

Bif..

Tue, 09/20/2011 - 11:38 | 1688955 jdelano
jdelano's picture

damn.  and it won't let me edit for some reason.

Tue, 09/20/2011 - 13:02 | 1689305 New_Meat
New_Meat's picture

locked after u get a reply.  otoh, if you had one of them magical time thingiez, u could go back and get it the way u want it now.

Tue, 09/20/2011 - 11:09 | 1688808 SteveNYC
SteveNYC's picture

Busted computerized zombie market custodian of your IRA/401k, bitchezzzz!

Tue, 09/20/2011 - 11:16 | 1688848 SMG
SMG's picture

THIS IS OBVIOUS MARKET CHEATING!  HOW CAN THIS NOT BE A CRIME?

Tue, 09/20/2011 - 15:15 | 1689766 Cathartes Aura
Cathartes Aura's picture

it is a crime, but who will prosecute?  act accordingly.

Tue, 09/20/2011 - 20:50 | 1690643 StychoKiller
StychoKiller's picture

Bailed out in March-2010 -- golden parachute!  Saved by silkworms!

Tue, 09/20/2011 - 11:19 | 1688862 RemiG2010
RemiG2010's picture

The new level of self destruction has been reached.

Tue, 09/20/2011 - 15:53 | 1689908 viahj
viahj's picture

Morpheus : Welcome.....to the desert of the real...We have only bits

and pieces of information, but what we know for certain is

that some point in the early twenty-first century all of

mankind was united in celebration. We marvelled at our own

magnificence.... as we gave birth...to A.I.

Tue, 09/20/2011 - 15:54 | 1689910 viahj
viahj's picture

edit:  double tap

Tue, 09/20/2011 - 11:07 | 1688778 GeneMarchbanks
GeneMarchbanks's picture

So greed is officially infinite? No longer are we trading within the time-space continuum, this should do wonders for trader Joe.

Tue, 09/20/2011 - 11:50 | 1688905 RemiG2010
RemiG2010's picture

It's not greed. Machines are heartless. For them, it's just 0s & 1s. It's madness!

Tue, 09/20/2011 - 11:05 | 1688783 Nihilarian
Nihilarian's picture

Michael J Fox fat fingered those trades.

Tue, 09/20/2011 - 11:14 | 1688832 TumblingDice
TumblingDice's picture

Why does Michale J Fox make the best milkshakes?

Because he uses the best ingredients.

Saw that one on the internet. Anyways, carry on.

Tue, 09/20/2011 - 11:49 | 1688992 andybev01
andybev01's picture

"Area woman with Parkinson's Disease bankrupts self via Amazons one-click buy feature." - the Onion

Tue, 09/20/2011 - 11:23 | 1688839 Quinvarius
Quinvarius's picture

It is my understanding that those trades would have required 1.21 gigawatts of energy to place.  Hardly seems like a 1/4 penny is going to cover that electric bill.

http://www.youtube.com/watch?v=XV_Dh2zvwLI

Tue, 09/20/2011 - 11:07 | 1688787 Dr. Engali
Dr. Engali's picture

This will surely add to the stability of the system.

Tue, 09/20/2011 - 11:06 | 1688788 Gandalf6900
Gandalf6900's picture

wish I could find chicks that fast!

Tue, 09/20/2011 - 11:26 | 1688902 scatterbrains
scatterbrains's picture

shoot wish I was that fast.. I could in the time she blinks strip her clothes off on the subway platform, bent her over handle my buisness, pull her panties back up, have a cig and walk away and no one notice except maybe she feels a slight sensation down there.

Tue, 09/20/2011 - 11:33 | 1688933 jdelano
jdelano's picture

um.  creepy.  

Tue, 09/20/2011 - 11:44 | 1688980 OOONONO
OOONONO's picture

you (and your imaginary girl friend) need to take your time and smell the roses - what is the hurry? 

Tue, 09/20/2011 - 15:20 | 1689784 Cathartes Aura
Cathartes Aura's picture

be sure to wash your hands now. . . and stay away from humanity.

Tue, 09/20/2011 - 11:38 | 1688958 mvsjcl
mvsjcl's picture

What good is Captain Jacking before her panties are off?

Tue, 09/20/2011 - 11:40 | 1688966 sabra1
sabra1's picture

you would've had sex with 5 guys, and not even know it at that speed!

Tue, 09/20/2011 - 12:21 | 1689120 TomJoad
TomJoad's picture

I love their burgers, but TomJoad is strictly hetero regardless of the fact that Eddies in the Space-Time Continuum.

 

Jump! You Fuckers!

Tue, 09/20/2011 - 11:07 | 1688792 Cone of Uncertainty
Cone of Uncertainty's picture

I don't understand that and you don't either.

Tue, 09/20/2011 - 11:07 | 1688801 Gandalf6900
Gandalf6900's picture

+20.000

Tue, 09/20/2011 - 11:10 | 1688811 Clorox Cowboy
Clorox Cowboy's picture

Sure you do...it means: you lose.

Tue, 09/20/2011 - 15:30 | 1689819 Rynak
Rynak's picture

Rynak to the rescue:

I do, because behind this technical explanation, is something very simple:

You're getting obsolete quotes.

See, when you get a quote from an exchange, it carries a timestamp, so that your computer knows the exact time to which this quote applies.

Those timespans, when the servers are busy, simply are wrong. They're not just wrong on your machine - they're wrong already on the servers. To put it bluntly: Not even the exchange servers themselves in peak times, know what happened when, because the speed of trades has become so high, that during high server load, they cannot accurately keep up with the trades anymore, and stuff gets out of sync (nanex reported on this earlier already).

Tue, 09/20/2011 - 11:07 | 1688795 Fips_OnTheSpot
Fips_OnTheSpot's picture

FLUX ME HARDER!!

Tue, 09/20/2011 - 11:07 | 1688796 Clorox Cowboy
Clorox Cowboy's picture

"These are not the droids you're looking for"  "Move along"

Tue, 09/20/2011 - 11:08 | 1688803 Gandalf6900
Gandalf6900's picture

brilliant

Tue, 09/20/2011 - 11:07 | 1688799 espirit
espirit's picture

Slowest algo holds an empty bag.

Tue, 09/20/2011 - 11:07 | 1688800 macholatte
macholatte's picture

a little music for this event

http://www.youtube.com/watch?v=97mSAAzwtv8

Tue, 09/20/2011 - 11:09 | 1688802 JW n FL
JW n FL's picture

 

 

sniffting gone wild!

Tyler touched my packet before it was even there..

Tue, 09/20/2011 - 11:08 | 1688804 rosiescenario
rosiescenario's picture

Obviously, these orders were filled in a parallel universe but leaked into ours through some sort of a worm hole.

Tue, 09/20/2011 - 11:09 | 1688809 nah
nah's picture

but even if you could prove it TPTB would just go back in time and kill your dad

Tue, 09/20/2011 - 11:10 | 1688815 Placerville
Placerville's picture

Maybe this is what Einstein was trying to achieve. If we can keep this up long enough, we could go back in time and back date our own orders just like they do with stock options.

Tue, 09/20/2011 - 11:22 | 1688888 caconhma
caconhma's picture

"we could go back in time and back date our own orders"

This is exactly what American Oligarchy is trying to achieve with all this money printing,theft, lies, and corrupt regulations: just get back to the old good times instead of  facing a slaughter in not too distant future.

Tue, 09/20/2011 - 13:09 | 1689324 New_Meat
New_Meat's picture

"This is exactly what American Oligarchy..."

did in the '90s with options

did in the '00s with ...

Tue, 09/20/2011 - 11:11 | 1688821 Vincent Vega
Vincent Vega's picture

This is the new futures market. Instead of buying Jan, Feb, Mar, etc...puts/calls you just buy the 190ms contract. Nothing to see here.

Tue, 09/20/2011 - 11:13 | 1688831 DonnieD
DonnieD's picture

Good one!

Tue, 09/20/2011 - 11:12 | 1688822 j0nx
j0nx's picture

SEC too busy surfing porn at work. Stop bothering them. Act on an insider tip from your friend at the pharmaceutical company about to release a helpful drug and you can be damn sure the SEC will stop whatever it is they are doing to come after your ass. 2 laws: 1 for them and 1 for you.

Tue, 09/20/2011 - 11:12 | 1688823 TheWord
TheWord's picture

So, this will be allocated to the Division For Impossible Trades at the SEC.

They will spend about 5secs deciding whether or not it is more interesting than Paris Hilton screwing a donkey, then pass it off as "public comment", "no new info".

Such is life in the public service, add-no-value clowns who don't realize that they have less than 5 years, before they're cleaning out toilets for a living.

Tue, 09/20/2011 - 11:31 | 1688924 g speed
g speed's picture

My donkey wants a copy of the Paris Hilton/donkey thing-- please send link

Tue, 09/20/2011 - 11:12 | 1688824 virgule
virgule's picture

Reminds me of a 13 year old hacker, 30 years ago, who was the first to figure out how to hack a backbone router and sniff every single ID+pwd passing on the net. It took an armed assault on his mother's house to shut him down for good (he had infiltrated almost every connected computer).

Seems like his kids are work today!

Tue, 09/20/2011 - 11:13 | 1688830 papaswamp
papaswamp's picture

I'm breaking out the IID (infinate improbability drive)....

http://www.youtube.com/watch?v=zjbtZ4NgtdA

Tue, 09/20/2011 - 11:16 | 1688842 Falcon15
Tue, 09/20/2011 - 11:38 | 1688953 HoardeBilly
HoardeBilly's picture

I wondered who would be first to bring in

Zaphod's ship "Heart of GOLD."

 

Ding! Ding! Give that papa a fine cuban cigar.

Tue, 09/20/2011 - 11:15 | 1688836 carbonmutant
carbonmutant's picture

Planck Time bitchez...

Tue, 09/20/2011 - 11:15 | 1688837 lolmao500
lolmao500's picture

Next up, just for fun, Marketwatch should publish a fake news article saying that Bernanke will print 300 trillions of $.

The HFT would trade it, it would be epic to see it.

Tue, 09/20/2011 - 11:15 | 1688838 YesWeKahn
YesWeKahn's picture

Tyler, there is nothing wrong about it. It happens a lot. It takes time for the 'clerk' (slower) computer to move the ask/bid

Tue, 09/20/2011 - 11:17 | 1688847 disabledvet
disabledvet's picture

"paradox trading." if I give a computer a question will it travel back in time to find the answer? And now we know...the answer is "yeeeessssss."

Tue, 09/20/2011 - 11:19 | 1688870 Falcon15
Falcon15's picture

Actually, the answer is 42.

http://www.youtube.com/watch?v=aboZctrHfK8

Tue, 09/20/2011 - 11:40 | 1688965 HoardeBilly
HoardeBilly's picture

Anyone else struck by the answer to Life, the Universe and everything...and how it matches the official US historical gold price set at $42....hmmmmm

Tue, 09/20/2011 - 11:45 | 1688981 disabledvet
disabledvet's picture

Or is it the question?

Tue, 09/20/2011 - 11:17 | 1688851 equity_momo
equity_momo's picture

And there was me quite proud that'd id got my latency down below 10 regular whole seconds. Thats assuming its a market order , add another 5 seconds if i'm putting a limit or a stop on it.

Tue, 09/20/2011 - 11:17 | 1688852 luigi
luigi's picture

I think J.K.Rowling was trading online and it wasn't fiction after all?

Tue, 09/20/2011 - 11:17 | 1688854 Coldfire
Coldfire's picture

That Mary Schapiro dude at the SEC will be all over this. Just wait and see...

<<crickets>>

Tue, 09/20/2011 - 11:18 | 1688860 Waffen
Waffen's picture

Seems fair, the average person is using the Pony Express to send in their trades while the insiders use a teleporter. The average person just needs to get themselves a teleporter. Its Capitalism bitchez  :(

Tue, 09/20/2011 - 11:39 | 1688961 fishface
fishface's picture

The elite wins the rest is loosing.

Nnothing wrtong with that

/sarc

Tue, 09/20/2011 - 11:18 | 1688861 somethingelse
somethingelse's picture

"Great Scott!"

Tue, 09/20/2011 - 11:47 | 1688988 disabledvet
disabledvet's picture

You mean "Great F. Scott!"

Tue, 09/20/2011 - 12:30 | 1689165 jdelano
jdelano's picture

over a lot of heads I think.  

Tue, 09/20/2011 - 11:18 | 1688863 LongSoupLine
LongSoupLine's picture

This is the fuking ultimate algo/HFT shark jump.  If we don't see action taken on this, we are all fuked for good.

Tue, 09/20/2011 - 11:32 | 1688931 SheepDog-One
SheepDog-One's picture

Right, if something huge doesnt derail all this insanity right now, we're just on the downhill slope to total hell.

Tue, 09/20/2011 - 11:18 | 1688864 FreakuentFlyer
FreakuentFlyer's picture

i think defeating the spead of time, beats defeating the speed of freefall. let's just hope this time we can get even in less than two new wars. i mean win in less than 2 new ward. if it's not too late. that is.

Tue, 09/20/2011 - 11:51 | 1688999 disabledvet
disabledvet's picture

A geek's last puzzle he tries to solve before he plunges to his death after falling off his donkey while touring the Grand Canyon: "but if the variable of time were altered my predicament would be..."

Tue, 09/20/2011 - 11:19 | 1688865 ZackAttack
ZackAttack's picture

One simple rule to fix all this: every bid must honored for a minimum of 5 seconds.

Tue, 09/20/2011 - 11:20 | 1688872 HedgeAccordingly
HedgeAccordingly's picture

classic 

Tue, 09/20/2011 - 11:20 | 1688873 Nothing To See Here
Nothing To See Here's picture

I don't know what the fuss is all about. All you need to have to work this market is a DMC Dolorean equipped with a fully fonctionnal flux capacitor.

http://uncrate.com/stuff/flux-capacitor/

Tue, 09/20/2011 - 11:20 | 1688874 TheWord
TheWord's picture

OK, so let me get this straight:

 

  • The trades occurred faster than the speed of light.
  • Which means that the trades occurred...before they actually...occurred.
  • Someone is gaming the system.
  • HOW LONG WERE THEY DOING IT, before zerohedge discovered it?  Days? Months? Years?
  • Will anyone receive a $10 paperwork-failure violation?
  • Is "Planning Minister" the ideal appointment for corrupt and influential members of all political parties?
Tue, 09/20/2011 - 11:31 | 1688922 SheepDog-One
SheepDog-One's picture

While Zerohedge was reporting on HFT 2 years ago, everyone said it was 'Crazy internet conspiracy kook nonsense'.

Tue, 09/20/2011 - 11:21 | 1688878 walküre
walküre's picture

Where's the problem? No seriously?

Tue, 09/20/2011 - 11:24 | 1688893 Waffen
Waffen's picture

Humans getting uppity because they don't have fantasecond fingers is my guess.

Tue, 09/20/2011 - 11:21 | 1688879 fdisk
fdisk's picture

Market anticipating QE3 and PM's not anticipating QE3?
Or what?
I don't get it, f* GOLD should be pushing $2k by now.

Tue, 09/20/2011 - 11:29 | 1688912 SheepDog-One
SheepDog-One's picture

Yep, things that make ya go hmmmmmm.

Something tells me while everyone expects what theyve been conditioned to believe is the only thing that can possibly happen, the exact opposite will happen tomorrow.

Got to pull the rug out sometime. Obama is on the skids, no point in propping that up anymore, Obama can be 'national emergency martial law COG Continuity of Govt for as long as he wants.

Its time.

Tue, 09/20/2011 - 11:22 | 1688884 truont
truont's picture

HFT=FUBAR

Tue, 09/20/2011 - 11:31 | 1688927 Uncle Remus
Uncle Remus's picture

Holy F#$%ing Trading, Batman. "God's work" in action.

Tue, 09/20/2011 - 11:22 | 1688887 Ponzi Unit
Ponzi Unit's picture

Here is a great talk on HFT speeds -- not that I get the math -- from the DEF CON 19 hacker conference. This was posted in recent days on this site.

 

http://vimeo.com/28846996

Tue, 09/20/2011 - 11:24 | 1688892 buzzsaw99
buzzsaw99's picture

Those trades were executed at the HFT event horizon. They appear to be out of sync with the universal laws of physics because they are traveling faster than light from your (much slower) perspective. it's an illusion bitchez.

Tue, 09/20/2011 - 11:27 | 1688899 Everybodys All ...
Everybodys All American's picture

You don't understand quantum physics. I'm just sayin.

Tue, 09/20/2011 - 11:28 | 1688910 buzzsaw99
buzzsaw99's picture

Got a "D" in that bitchez.

Tue, 09/20/2011 - 11:26 | 1688900 SheepDog-One
SheepDog-One's picture

Theres still a YHOO stock?

Tue, 09/20/2011 - 11:30 | 1688903 dwdollar
dwdollar's picture

Are entities building their own networks? For example, is it feasible to place two high wattage transceivers on opposite coasts using some obscure band? Or use a dedicated satellite?

Tue, 09/20/2011 - 11:27 | 1688904 luigi
luigi's picture

Hey, this is the way out of the crisis: let 's just time revert! :D

Tue, 09/20/2011 - 11:28 | 1688909 tip e. canoe
Tue, 09/20/2011 - 11:29 | 1688911 Uncle Remus
Uncle Remus's picture

Let's do the time warp again.

Tue, 09/20/2011 - 11:39 | 1688963 buzzsaw99
buzzsaw99's picture

it's the pelvic thrust...

Tue, 09/20/2011 - 14:08 | 1689527 Uncle Remus
Uncle Remus's picture

Oh yeah, lotta that going on...

Tue, 09/20/2011 - 11:30 | 1688914 Madcow
Madcow's picture

"Capitalism"    =  illegal trading   x    government corruption    x    super-computers    x   wall street fraud  x    tax-payer-bailouts

Tue, 09/20/2011 - 12:17 | 1689104 Gold Man-Sacks
Gold Man-Sacks's picture

Maybe you should actually look up the definition of capitalism.  You may be surprised at what you find.

Tue, 09/20/2011 - 11:30 | 1688919 SofaPapa
SofaPapa's picture

The funny thing is that this is all now so fast it's meaningless 99% of the time.  The trends on much slower timescales (days, weeks, years) capture as much meaning as they always have.  Right now, these long timescales are talking about the battle between printing and stagnation/contraction, just as we'd expect.  The bots argue over the meaning of some single decision, as though winning the speed race in reacting to that single decision/news item is going to yield the big answer.  Obviously, the goal is to repeat those infinitely small (now beyond infinitely small) victories an infinite number of times and so to win over the long run.  Seems like an awful lot of tecnology and money being thrown at a strategy that seems to me at best equal and often not even that to the judgment of which humans are still quite capable about trends in our society and where it is headed.  And that judgment still works in pre-warp-speed time, as it always has.

Sat, 09/24/2011 - 14:01 | 1705563 Diogenes
Diogenes's picture

The goal is to suck $100,000,000 out of the markets per month, every month, without fail and without risk by chiselling at the speed of light.

Tue, 09/20/2011 - 11:31 | 1688923 Sutton
Sutton's picture

Figure an eighth-

What do  you wanna do?

 

Good old days

Tue, 09/20/2011 - 11:37 | 1688948 jdelano
jdelano's picture

nah.  go for the oz.  gonna be a rough week.

Tue, 09/20/2011 - 11:33 | 1688935 adr
adr's picture

I guess when you see those $.40 one second jumps there really was a lot of trading behind it. You just wouldn't ever be able to see it because the traded happen faster than you brain could process the signal.

It really isn't time travel but time compression. A full day of normal trades is now compressed into one second. The 10% daily moves now make sense. The market has actually priced in 100 years of growth in just one day. The computers are working on a completely different time scale.

What a great con job. By speeding up time in the machine you get to book gains like you waited 40 years, but didn't have to age a day to realize them.

Tue, 09/20/2011 - 11:33 | 1688938 SheepDog-One
SheepDog-One's picture

DOW up +130? QE is D.O.A.

Tue, 09/20/2011 - 11:36 | 1688944 jblack010
jblack010's picture

move along...nothing to see here...

 

I guess the SEC is too busy with its porn

Tue, 09/20/2011 - 11:38 | 1688952 SheepDog-One
SheepDog-One's picture

A bit misleading headline, as 'Time' itself does not have a 'speed'...light has a speed, and the Nazis were already time traveling with 'Die Glocke' back in the 40's. Time travel? Old news.

Tue, 09/20/2011 - 11:40 | 1688964 amanfromMars
amanfromMars's picture

So ... that's the trading system hacked and vulnerable to trojan delights.

Tue, 09/20/2011 - 11:41 | 1688970 YesWeKahn
YesWeKahn's picture

Electron travels at the speed of light, there is nothing wrong about it.

Tue, 09/20/2011 - 11:42 | 1688971 sabra1
sabra1's picture

one HFT to the other, "i am unique, isn't that so dr, bernank?"

Tue, 09/20/2011 - 11:43 | 1688974 NotApplicable
NotApplicable's picture

"We are confident the exchange timestamp problem has been completely addressed by now: the SEC would have made sure of it. It's not like adding accurate timestamps is rocket science, or even considered a difficult problem."

You forgot your /sarc tag.

While not considered a difficult problem, it is considered work, and well, this is the SEC we're talking about here.

Tue, 09/20/2011 - 11:44 | 1688978 Joebloinvestor
Joebloinvestor's picture

"Time is what keeps everything from happening at once" John Wheeler

Tue, 09/20/2011 - 11:45 | 1688982 JW n FL
JW n FL's picture

 

 

for everyone who doesnt know and or understand.

 

1. Market Maker with CoLocation (think JPM / Goldman)

2. Custom Silicon Plug In.

Being able to pass around your clients to each other on every trade, Priceless.

 

it amazes me why no one will say this out in the open other than me?

Tue, 09/20/2011 - 12:03 | 1689032 JW n FL
JW n FL's picture

 

 

http://cosmiclog.msnbc.msn.com/_news/2011/09/18/7802623-gamers-solve-mol...

Gamers figure out the mysterious molecular structure of a monkey-virus enzyme using Foldit, a software program developed at the University of Washington. Msnbc.com's Alan Boyle reports.

By Alan Boyle

Video-game players have solved a molecular puzzle that stumped scientists for years, and those scientists say the accomplishment could point the way to crowdsourced cures for AIDS and other diseases.

"This is one small piece of the puzzle in being able to help with AIDS," Firas Khatib, a biochemist at the University of Washington, told me. Khatib is the lead author of a research paper on the project, published today by Nature Structural & Molecular Biology.

The feat, which was accomplished using a collaborative online game called Foldit, is also one giant leap for citizen science — a burgeoning field that enlists Internet users to look for alien planets, decipher ancient texts and do other scientific tasks that sheer computer power can't accomplish as easily.


"People have spatial reasoning skills, something computers are not yet good at," Seth Cooper, a UW computer scientist who is Foldit's lead designer and developer, explained in a news release. "Games provide a framework for bringing together the strengths of computers and humans."

Sat, 09/24/2011 - 14:04 | 1705578 Diogenes
Diogenes's picture

Did he say gamers are spatial?

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