• Use a binary transaction protocol to eliminate data conversions and complex parsing.

• Use Remote Direct Memory Access (RDMA) verbs and zero copy mechanisms to eliminate network protocol stack processing.

• Use preallocated data structures to completely eliminate all memory turnover and associated garbage collections.

• Tune the hardware and OS for low latency

Part of me says “duh” but part of me says that maybe this is not necessarily common application yet?

Another “worlds fastest matching engine” – here

Tibco FTL messaging – seems interesting…

Fixnetix Raises the Bar: World’s Fastest Nanosecond Trading – more FPGA trading…

Go LMAX guys – open sourced some truly cool code. Smart guys using Java well.

CME Study Claims HFT Reduces Price Swings

Original Story

Phantom Indexes

If so much volume trades off-primary – how valid are our index values??? Good food for thought.

I saw the original article after the flash crash when it came out here, great graphics and an interesting explanation. Zerohedge had another article that linked back to another Nanex.net article – here. All worth the read…  Quote Stuffing (jamming a ton of data down your competitor’s throats), Crop Circles (the resultant patterns in the data visualized), and more fun stuff inside!

In essence, there is a growing consensus that the HFT boys are causing more trouble than they are worth… let’s see how the regulators cope!