Markus Kuhn scripsit:
> Accellerating
> markets to enable them to make major supply and price changes
> automatically with subsecond resolution just shortens the timeconstants
> of the control loop equations involved and removes the ability for
> humans to oversee what is actually going on. That sounds like calling
> for instability and increasing the noise amplitude, which I doubt can be
> justified with any actual economic benefits.
The whole point of arbitrage is to know (and act on) what other people
don't know, or or don't know yet. In the 1s-precision regime, people
who have access to data that comes to them less than 1s faster than
others don't gain any benefit from it. With more accurate timestamping,
more accurate reflection of the value of timely data is possible.
As for market management, it will and must go beyond effective human
intervention. Monitoring programs will have to react faster and more
comprehensively than participants; as a result, they will need subsecond
precision even before other components in the system require it. In the
last analysis, trades can be rescinded if necessary, the moral equivalent
of pulling the plug.
--
Eric Raymond is the Margaret Mead John Cowan
of the Open Source movement. jcowan_at_reutershealth.com
--Lloyd A. Conway, http://www.ccil.org/~cowan
amazon.com review http://www.reutershealth.com
Received on Tue Dec 23 2003 - 07:44:07 PST