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Direct MessagesDate/Time: Sun, 05 May 2024 20:48:32 +0000
Post From: Convenience vs mkt segment gtwy
| [2022-02-03 18:44:19] |
| User220914 - Posts: 239 |
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You asked me to prove it to you so i will prove it n 2 ways. https://www.cmegroup.com/confluence/display/EPICSANDBOX/iLink+Architecture#iLinkArchitecture-ConvenienceGateway 1. Read this page from the CME and understand clearly that there is NO "FIFO" (timestamp) priority until the orders from the Convenience gateway are batched and sent to the Market segment gateway. There are 17 market segment gateways and 1 main convenience gateway. THE CONVENIENCE GATEWAY ROUTES ALL GLOBAL ORDERS FOR ALL CME MARKETS OPTIONS AND FUTURES to the CORRECT MARKET SEGMENT or dedicated gateway that then TIME STAMPS orders and interacts with the trade engine/ match engine. Once the orders from the CONVENIENCE gateway hit the correct market segment gateway they then have an actual time stamp. This alone proves that no matter what the transmission time from new york or timbuktoo that if i am in the exact same place lets say in CHICAGO with a direct feed to your server then if your server routes my 1 lot ES (sp500) futures order to 1. the conveniece gateway and at the exact same time routes another order a 1 lot to the market segment gateway that the market segment gateway actually "SKIPS" the step of being stuck and filtered while resting on the convenience gateway. this is called processing and it may be fast but it is still slower than going DIRECTLY to the Market segment gateway! Does this mean that your direct order routing is not amazingly fast or terrific.. no not at all I am sure that your direct routing is above and better than industry standard. However to actually go to the mat over which one is faster the convenience gateway vs the market segment gateway then the real answer or fact check is that the Market segment gateways are faster by a massive precentage once you drill down into! How would this be a factor to a mouse click trader not much but if i have order being placed from a co located server that is sending orders to the cme before prices can even be seen on my computer screen then I would want them to be sent to the fastest gateway possible with a time stamp to prove my priority since I am spending a lot of money to be co located and not GROUPED into the regualr orders at the convenince gateway. An analoogy would be regular highway lanes on a 6 lane highway is the convenience gateway we all get to use them versus the HOV lane or EXPRESS lane where we pay for the priviledge of directly routing to our destination by passing lots of traffic and the bottlenecks created by those orders. 2. You can call the CME global command center and speak with the engineers which obviously you have since you go tyor direct routing set up and running and they will tell you yes the market segment gateways are faster but does it actually make much of a difference for a mouse click trader? that is the question. If i am marekt making from your server then it might if im in a trade for less than a second. Lastly I would also say that you need to measaure the bandwidth allowed by the cme for the convenience gateway versus the market segment gateways and this is exactly when you would see that LARGEST % change and the MOST ADVANTAGEOUS reason for going direct to the market segment gateway in the 1st place when you need your orders to be filled at the most volatiel and important time with possibly little liquidity you then want to get time stamped and on that MARKET SEGMENT gateway as fast as possible. Common sense tells you that 1000 messages is much easier to filter/parse and handle than 1 million when the mkt moves rapidly due to events or news or reports. I will end this technical speed debate with the FACT that Sierra Chart is an amazingly fast and excellent product that i always recommend and I am excitd to use the direct order routing along with denali in the very near future and i think it humble and fantastic that you are doing for an incredibly low cost to your customers. I also see that you are showing us and telling us that hey guys theses other comapneis are doing the same thing but slower and charging you a ridiculous amount of money ROUNDTRIP to get your ordes to the exchange. THANK YOU SIERRA CHART Date Time Of Last Edit: 2022-02-03 18:44:39
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