How fast are options market makers?

M

muckbucket

How fast can options market makers update their quotes after there has been a change in the underlying futures?
Firms like Getco etc can send a quote in microseconds but this involves getting the new futures price, processing the new data and sending out an updated quote. I'd saying a few hundred microseconds to tens of milliseconds? I'd like your opinions.
 
not sure about how many ms, but they can also change settings so quotes don't change with every increment of the underlying...there are tons of factors...how fast is your computer, how fast is your line.
 
Quote from grg03002:

not sure about how many ms, but they can also change settings so quotes don't change with every increment of the underlying...there are tons of factors...how fast is your computer, how fast is your line.
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currently developing an auto-quoter and needed a benchmark. computer will be colocated. what are some of the other factors? i believe the top firms use GPUs to do the option pricing analytics. i'm curious to know when their algo does decide to change quotes, how fast can they do that.
thanks
 
Quote from muckbucket:

currently developing an auto-quoter and needed a benchmark. computer will be colocated. what are some of the other factors? i believe the top firms use GPUs to do the option pricing analytics. i'm curious to know when their algo does decide to change quotes, how fast can they do that.
thanks
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You need this type of computer to beat them. Goldman Sachs has 4 of them. The use Gallium processors and neural networks.

Here is a pic of one of them, Your crappy GPU idea would fall flat on its face against this TOPR-2 series system (Trading Operations Planned Response)

cm2-hds.gif
 
Quote from Rodney King:

I strongly suspect this is a load of [ ]. The pic is of a 1987 computer.
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Still, it looks impressive for a 1987 computer and it had 65,536 processors. Every blinking light represented activity on one of the 65,536 cpu's (16 cores per 1 cpu chip)
 
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