Broker for Quoting Lotsa Names

[Zipf]

I am a wet-behind-the-ears quant with some programming experience.

I'd like to quit my day job, and start quoting on 300+ names simultaneously with sub 100ms latency (limit orders only). Indeed, sub 50ms latency would be better. And, if possibe, I'd like to collect rebates too. Would want a C/C++ Linux API, although Java could work too. I am comfortable working with UDP directly if need be.

Is there a broker could meet the above? With portfolio margin? Historical CQS/CTS? For those who have gone this route: is CoLo strictly necessary in this case?

Thanks,

Z

P.S. I've heard of some kind of monster called HFT: will HFT necessarily eat me alive trying the above?

 

[rmorse]

Quote from Zipf:

I am a wet-behind-the-ears quant with some programming experience.

I'd like to quit my day job, and start quoting on 300+ names simultaneously with sub 100ms latency (limit orders only). Indeed, sub 50ms latency would be better. And, if possibe, I'd like to collect rebates too. Would want a C/C++ Linux API, although Java could work too. I am comfortable working with UDP directly if need be.

Is there a broker could meet the above? With portfolio margin? Historical CQS/CTS? For those who have gone this route: is CoLo strictly necessary in this case?

Thanks,

Z

P.S. I've heard of some kind of monster called HFT: will HFT necessarily eat me alive trying the above?

This would take a long time to go over in a forum thread. Basically, if we're talking about making markets in equities, not options, you'll need not only a co-location with direct data feeds, you'll also need sponsored access to an ECN like ARCA through a member firm. This is the only way to get those speeds. If you're going to write your own program, the risk part will have to meet the new regs on pre-market checks and be approved by your Prime Broker. Sponsored access right now is very difficult with the new regulations, but not impossible.

 

[Zipf]

Quote from rmorse:

This would take a long time to go over in a forum thread. Basically, if we're talking about making markets in equities, not options, you'll need not only a co-location with direct data feeds, you'll also need sponsored access to an ECN like ARCA through a member firm. This is the only way to get those speeds. If you're going to write your own program, the risk part will have to meet the new regs on pre-market checks and be approved by your Prime Broker. Sponsored access right now is very difficult with the new regulations, but not impossible.

So basically -- there isn't a broker platform for portfolio market making. I might do better approaching my current employer (a small BD) about starting a automated MM platform. Needless to say, I'll run right into the bureaucracy. Would have to build trader-trader friendly EMS because I wouldn't be the boss.... ugh.

BTW - I think that sub 100ms latency should be doable over fiber in the NY area without CoLo.

I've been around a bit, and I start to see that I have some degree of (unrealized) technical ability. Ideally, I want to be a player, not an employee.