Eliminating the advantage of speed

The NYT has this longish article on the story behind IEX, a ‘fair’ stack exchange explicitly designed to neutralize the advantages of high speed traders (at the core this involves the 38-mile coil of fiber optic cable in a box) depicted below. In this article an IEX employe lays out a theory of why there are so many Russians involved in high speed trading operations, which pretty much confirms my theory on the relation between high speed trading and soviet economics from 2012: Sokoloff was Russi…

The market's clock speed is laughable

Just finished reading ‘Red Plenty‘ by Francis Spufford which has replaced ‘Turing’s Cathedral‘ as my favourite book from this year. In fact the two books probably should be read together. Red Plenty picks up approximately where Turing’s Cathedral ends and offers a rather fascinating peek into how the invention of electronic computers interacted with the planned economy of the Soviet Union under Khrushchev and his immediate successors. Red plenty follows a community of scientists (economists, com…