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Date/Time: Fri, 29 Mar 2024 15:29:55 +0000



Post From: Convenience vs mkt segment gtwy

[2021-07-13 01:00:59]
User220914 - Posts: 239
Hello

I Thought I would give some clarification on the gateways at the CME since there has been misinformation in the latency post for your cme direct routing diary.

1. The convenience gateway is like when you buy a ticket for a music concert and get a convenience fee! The convenience gateway is a latency bottle neck! Why? Because the convenience gateways get all orders from all markets going into it from all over the world at the same time!

The market segment gateways only deal with orders for the specific market so as or nq or corn.

Even more importantly the orders at the convenience gateway are all Batched!!! The exchange holds them back until enough orders hit and they send n sort them to the mkt segment gateways.

What does this mean? It means your order is NOT getting fifo
Priority until after it hits the market segment gateway!! So my order that hits the convenience gateway before yours could randomly get fifo priority at the mkt segment gateway eventhough you were 1st!

This is why tt and cqg allow direct access to the mkt segment gateways! Priority is way more important than latency to the exchange.

The convenience gateway is a built in speed bump for professional users of the market segment gateways!! I mean common sense tells you the mkt segment gateways are much better due to the bypass of the convenience gateway!

Perhaps you should divulge the source who told you the convenience gateway was better than mkt segment and question why on earth anyone would say that to begin with about mkt gateways? Anyway understand that there is no timestamps on the trade engine until those orders go from convenience get filtered then sent to mkt segment gateways of the individual mkts. I am including links to the cme website for your records.

Maybe you could allow or set up say es mini sp500 for mkt segment in the future? Narrow it down to a couple mkts if possible.

I am looking forward to using your mkt access but latency as far as actual time stamps to the trade engine will be the same as everyone else.

I also feel that Sierra Chart should divulge what pipe or what connection we are using with sierra order routing.

I.e. tradeovate is cqg..
Rhithmic is ohme..or omni
Amp I think is TT.

Very few direct access are actually direct i.e. you own the actual pipe and full bandwidth connection. That runs roughly 130k per year minimum.

This is why so many companies who own actual direct access sell off the bandwidth to other brokers and fcms. This is also why tt cqg gain doms all slow down at certain levels due to bandwidth throttling and convenience gateways.

Again really looking forward to your service and I posted this from a knowledge stand point. Realistically unless a micro time frame scalper or synthetic mkt maker then the convenience gateway should suffice. However true reduced latency for fifo priority resides directly to the mkt segment gateways.