Prop trading (Black box)

[propseeker]

i guess that's a no.

 

[hitnrun]

surprised don did not respond to that question on co/locate ?

 

[Don Bright]

Quote from propseeker:

do bright or echo have colo options for their black box traders?

Nope, haven't yet found the need, seriously.

Don

 

[c0l$il]

Be very careful of "black box" trading, I have friends that were fired once the system was up and running. The firm they worked for still runs their system.

 

[syswizard]

Quote from c0l$il:

Be very careful of "black box" trading, I have friends that were fired once the system was up and running. The firm they worked for still runs their system.

Was it THEIR system ? If so, they have a major IP claim here.

 

[syswizard]

Quote from Don Bright:

Nope, haven't yet found the need, seriously.

Don

I have to agree with Don here. Unless you are simulating a market making role or scalping for fractions of ticks or spoofing the order book, colo is a waste of money. It's like buying and then driving a Ferrari to church.

When Nasdaq and the other exchanges start to impose those cancellation fees, the advantage of colo will be reduced.

 

[Don Bright]

Quote from syswizard:

I have to agree with Don here. Unless you are simulating a market making role or scalping for fractions of ticks or spoofing the order book, colo is a waste of money. It's like buying and then driving a Ferrari to church.

When Nasdaq and the other exchanges start to impose those cancellation fees, the advantage of colo will be reduced.

Yep, those cancel fees will bring on a whole new ballgame, better for most of the traders.

Don

 

[ChitownECHO]

Quote from propseeker:

do bright or echo have colo options for their black box traders?

I believe GMA will allow colo of their software. You'd have to ask echo specifically if they'd allow it though.

 

[propseeker]

Quote from Don Bright:

Nope, haven't yet found the need, seriously.

Don

well, risk for one. sucks to have a huge book working orders and then some fiber outside of new york goes down. happened last year.

but, thanks for answering the question.

 

[propseeker]

Quote from syswizard:

I have to agree with Don here. Unless you are simulating a market making role or scalping for fractions of ticks or spoofing the order book, colo is a waste of money. It's like buying and then driving a Ferrari to church.

When Nasdaq and the other exchanges start to impose those cancellation fees, the advantage of colo will be reduced.

since don's group does a lot of intraday pairs, they're going to be making a lot of markets. they're not driving to church. hence the question.

secondly, colo isn't that expensive, it's the feeds that are. since they're already setup through redi though, they'd be pulling through their server farm and just paying terminal fees as they do now.

thirdly, you should actually read and understand the proposed cxl fees. cliff notes: top of book won't be affected (where speed counts).