Network Delays Cost Stock Trading Firms Millions
Computer programmers have created an inexpensive solution for diagnosing delays in data center networks as short as a hundred millionth of a second. These very short delays measured in millionths of a second can cause multi-million dollar losses for investment banks running automatic stock trading systems.
The work was presented on August 20th, 2009 at SIGCOMM. The computer programming method was created by a joint task collaboration between the University of California and Purdue University computer programmers.
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.
Instead of summing the arrival and departure times of all packets traveling through a router, the computer programmers new system randomly splits incoming packets into groups and then adds up arrival and departure times of each of the groups separately. As long as the number of losses is smaller than the number of groups, 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 that has thousands of routers all running this new programming code in each router will be able to detect problem routers very quickly. In tests, a router that is adding a millionth of a second delay was detected instantly. The code even detected a router that was losing one packet in every hundred million. - 23223
The work was presented on August 20th, 2009 at SIGCOMM. The computer programming method was created by a joint task collaboration between the University of California and Purdue University computer programmers.
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.
Instead of summing the arrival and departure times of all packets traveling through a router, the computer programmers new system randomly splits incoming packets into groups and then adds up arrival and departure times of each of the groups separately. As long as the number of losses is smaller than the number of groups, 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 that has thousands of routers all running this new programming code in each router will be able to detect problem routers very quickly. In tests, a router that is adding a millionth of a second delay was detected instantly. The code even detected a router that was losing one packet in every hundred million. - 23223
About the Author:
Written by Lance Jepsen. When are you finally going to get tired enough of losing money in the stock market and do something about it? For stock trading secrets from millionaire stock traders visit stock trading
posted by X - Men @ 3:08 AM
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