A Million Dollar Reason Why Stock Trading Delays Must Be Fixed Fast
A cheap solution has been discovered by computer programmers for detecting millionth of a second delays in routers in data center networks. Automatic stock trading systems with even a millionth of a second delay can cost over a million dollars.
Purdue and the University of California computer science departments teamed up to work on the problem. They created a very small algorithm that requires no additional hardware to run.
This small programming code can detect delays as short as a millionth of a second in a router. The code will also detect packet loss as small and rare as one packet loss in a million. Every router in a data center can run this small code.
No new hardware is required. The team of computer programmers call their code the Lossy Difference Aggregator. The programming code has no speed penalty on the router in which it runs.
Institution stock traders and corporations that sell online stock trading platforms will go crazy for this technology. The reason is that if an online brokerage firm has a stock trading algorithm that reacts to an incoming market data feed even just 100 microseconds faster than the competition, they can buy millions of shares before their competitors.
Exchanges like the Nasdaq use very expensive custom hardware designed to track delays in the performance of routers at different key points within a data center network. But these hardware boxes are too expensive to be added to every router within a data center's network. Especially if that data center is running an automated stock trading system. By the time the I.T. Department detects a problem router, it usually costs the company 1 - 3 million dollars in delayed entry and exits on trades.
Router vendors will now be able to add this programming code to every router at no extra cost to the customer. Expensive external router monitoring hardware will no longer be needed.
The way router performance is monitored now is by expensive external hardware that tracks when a packet enters the router and when it exists the router and then takes the difference of those times.
This new computer programming code works almost the same way but instead of taking the arrival and departure times of every packet, it splits the incoming packets into groups and then calculates the arrival and departure times of each group. As long as the number of groups is greater than the number of losses, at least one group will give a good estimate.
Calculating the difference of the groups arrival and departure times and then dividing by the total number of messages gives a very accurate estimate of the average delay of a given router. This approach requires so little computer programming code that it really is about the same code as a simple counter.
A data center network that has this programming code built in to every router will be able to quickly pinpoint a faulty router that is adding an extra millionth of a second delay or that is losing one packet in ten million. - 23162
Purdue and the University of California computer science departments teamed up to work on the problem. They created a very small algorithm that requires no additional hardware to run.
This small programming code can detect delays as short as a millionth of a second in a router. The code will also detect packet loss as small and rare as one packet loss in a million. Every router in a data center can run this small code.
No new hardware is required. The team of computer programmers call their code the Lossy Difference Aggregator. The programming code has no speed penalty on the router in which it runs.
Institution stock traders and corporations that sell online stock trading platforms will go crazy for this technology. The reason is that if an online brokerage firm has a stock trading algorithm that reacts to an incoming market data feed even just 100 microseconds faster than the competition, they can buy millions of shares before their competitors.
Exchanges like the Nasdaq use very expensive custom hardware designed to track delays in the performance of routers at different key points within a data center network. But these hardware boxes are too expensive to be added to every router within a data center's network. Especially if that data center is running an automated stock trading system. By the time the I.T. Department detects a problem router, it usually costs the company 1 - 3 million dollars in delayed entry and exits on trades.
Router vendors will now be able to add this programming code to every router at no extra cost to the customer. Expensive external router monitoring hardware will no longer be needed.
The way router performance is monitored now is by expensive external hardware that tracks when a packet enters the router and when it exists the router and then takes the difference of those times.
This new computer programming code works almost the same way but instead of taking the arrival and departure times of every packet, it splits the incoming packets into groups and then calculates the arrival and departure times of each group. As long as the number of groups is greater than the number of losses, at least one group will give a good estimate.
Calculating the difference of the groups arrival and departure times and then dividing by the total number of messages gives a very accurate estimate of the average delay of a given router. This approach requires so little computer programming code that it really is about the same code as a simple counter.
A data center network that has this programming code built in to every router will be able to quickly pinpoint a faulty router that is adding an extra millionth of a second delay or that is losing one packet in ten million. - 23162
About the Author:
By Lance Jepsen. For free stock trading advice by master stock traders and free stock charting software go to stock trading

