Co-location (colo) for trading software

Quote from gmst:

It seems hundreds of millions of dollars someone spent on building a better fibre optic between 2 cities (NY and Chi) has gone down the drain. The way technology evolves :cool:

The ironic thing is the microwave links are way older than fiber optics, so "re-inventing" is probably a more appropriate way of describing it... :)
 
Quote from garachen:

I know of a case where the owner of a large well-known company fired a small team of 4 who had all their own software and were making 10+M/year. Even with all the software and servers left intact he couldn't get it to run - had 30 programmers trying - it just sits there now.

LOL, I wonder if the guy got greedy... I know one fund that closed that the owner did it the other way around... he basically continued to hire his programmers to continue supporting the software that managed his money... dood had close to 1b... and he likes money so he kept on at it...
 
Quote from garachen:

The biggest protection is complexity. The code that makes everything work properly is quite tied to the hardware. Lots of hand tweaked pieces in the Linux kernal, crazy network card drivers, some custom written Assembly. On and on.

Basically, you'd need someone smart enough to write it all in the first place in order to transport it to a new environment and have any confidence that it would work.

95% of the work is speed. Only 5% is strategy writing. Most strategies are super simple.

I know of a case where the owner of a large well-known company fired a small team of 4 who had all their own software and were making 10+M/year. Even with all the software and servers left intact he couldn't get it to run - had 30 programmers trying - it just sits there now.

Makes sense. Thanks for the explanation. The last story was funny and insightful. Btw - off the skills you noted viz. Linux kernal, crazy network card drivers, some custom written Assembly - I possess none of them. And I have been dreaming that next step in my trading career should be moving towards HFT with probably rolling out my first systems sometime towards end of 2014 (on emerging non-US markets). That was quite a reality-check. LOL.
 
Quote from ofthomas:

from experience, well... what we do ...

we own the servers, we rent the floor space(cages) or racks... those are locked... access to the facilities is limited to (and I mean this) like 3 people within the LLT team... they are escorted in, and out... the facilities are usually CCTV protected, everything recorded... I know our ITRM reviews the tapes weekly...

on the servers, instrumentation on the iLOM side alerts when anything is removed/down/taken offline/etc... that goes to the NOC, gets logged into ITSM, tickets are opened, etc... so there is an audit trail for anything and everything...

firewall from the outside, 2 layers... but flat network(arista) once you get in... Feed A/B for the market data (solarflares)... separate network (Redundant as well) to the OE side.. (depending on server function really)...

every activity on the server gets logged... locally and remotely at the same time... every shell session, etc... there is also two factor auth to get into the server (remotely that is)...

to make it simple... you have to trust the admins touching the systems... usually the co-lo staff doesnt touch them... everything is redundant within the servers and they are also redundant themselves in different cabinets, etc...

the op we have might be different... the LLT org is at pretty much every venue out there depending on the exchange and depending on what LOB are out there they also have a given number of servers, etc... so usually there are more than 3-4 racks onsite for us...

in any event, the code itself is usually compiled and obsfuscated, broken down into libraries that contain the GAT strategies, and components that each do something, etc...

overall, hard to steal... and if you are the admin... you still need the infra to run it... so unless you have deep pockets, hard to do...

Yeah, datacenter physical security is ridiculous. To actually physically get in there I have to be escorted by someone with a registered retina. It's like someone smart realized that walking into one of those places with a bomb would cause some serious problems.

I'm less concerned about my code than most. I know a few of my employees could recreate it all from whole if they wanted to and if you are running a trading business you always have to choose between hiring smart people who are smart enough to steal from you or dumb people who can't make money.
 
Quote from ofthomas:

LOL, I wonder if the guy got greedy...

Yeah, he was a jerk and super greedy. The entire group (of 4) waited out their non-compete and put themselves up for sale. I love it when (other) people make decisions while drunk.
 
to echo some of the comments here, strategy theft is really a non-issue. if you're making money, it's a very high probability you're not doing anything new. ALL of the cost (and true value) is infrastructure, be it hardware or code, and the latter you're not going to be storing remotely.
 
what about datafeed?

iqfeed servers are located in NE, doesn't that defeat the purpose of colocating near the exchange if your datasource is far away. any data feed suggestions?
 
Quote from calhawk01:

what about datafeed?

iqfeed servers are located in NE, doesn't that defeat the purpose of colocating near the exchange if your datasource is far away. any data feed suggestions?

No, it more is a case of "don't select a ridiculous data source if you want to be fast". ;)

If you need HFT, you need a HFT capable data source. It is not like you are tied by death to IqFeed, or? Which, btw., is a typical low end retail feed.
 
ok this is ridiculous lol

i've searched the net and ET and cannot find my answer: what is a good reliable & fast data feed that provides fast exection / low latency and NOT high frequency and is affordable for the little guys and has servers near exchanges
 
Quote from calhawk01:

ok this is ridiculous lol

i've searched the net and ET and cannot find my answer: what is a good reliable & fast data feed that provides fast exection / low latency and NOT high frequency and is affordable for the little guys and has servers near exchanges

What markets?

CME: Rithmic. The API has a data feed for that purpose. You may get it as multicast if you colocate right.
 
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