Stock Trading And Network Delays
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.
The best part about this is that this solution requires no new hardware and has no performance penalty. The computer programmers call their invention the Lossy Difference Aggregator.
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.
Online automated exchanges like the American Stock Exchange use custom designed hardware boxes that are very expensive. These boxes are put on routers and key points in a data center network. These external hardware boxes are too expensive to put on every router within a data center network making it difficult to trouble shoot and find a problem router. By the time the problem is detected and fixed, it will cost the company anywhere from 2 to 4 million dollars because of delayed buy and sell orders.
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 a router's performance is measured now is that an external hardware device tracks when a packet arrives and when it leaves 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.
With this computer programming code built into every router, a data center manager will be able to quickly pinpoint the offending router and interface that is adding extra millionth of a second delays or losing even one packet in a million. - 23221
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.
The best part about this is that this solution requires no new hardware and has no performance penalty. The computer programmers call their invention the Lossy Difference Aggregator.
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.
Online automated exchanges like the American Stock Exchange use custom designed hardware boxes that are very expensive. These boxes are put on routers and key points in a data center network. These external hardware boxes are too expensive to put on every router within a data center network making it difficult to trouble shoot and find a problem router. By the time the problem is detected and fixed, it will cost the company anywhere from 2 to 4 million dollars because of delayed buy and sell orders.
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 a router's performance is measured now is that an external hardware device tracks when a packet arrives and when it leaves 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.
With this computer programming code built into every router, a data center manager will be able to quickly pinpoint the offending router and interface that is adding extra millionth of a second delays or losing even one packet in a million. - 23221
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Written by Lance Jepsen. Learn how to get your revenge on traders that have been taking your money. Get free expert stock trading analysis and tips by going to stock trading
posted by X - Men @ 3:36 AM
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