Wednesday, September 25, 2013

Stealing three to seven milliseconds

So this just hit a few major news medias and it seems relevant to what we've been discussing. It takes 7 milliseconds for a message to be sent from Washington D.C. and Chicago. However, somehow in only 2-3 milliseconds after the Federal Reserve announced it would not be tapering its bond buying program at 2pm in Washington, several huge orders were made in Chicago based on that decision. No one is quite sure how it happened yet, maybe someone was just extremely lucky, but the news reporters discussing it seem to think it more likely there was a leak and algorithms setup to exploit the few milliseconds necessary to send and receive the official message. Not sure if that counts as a stratagem, since it relied on a stable system of banking and communications networks, but it is certainly sophist-icated in Fuller and Goffey's sense of the word.

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