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Date/Time: Fri, 17 Sep 2021 04:17:24 +0000



Convenience vs mkt segment gtwy

[2021-07-13 01:00:59]
User220914 - Posts: 170
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.
[2021-07-13 01:05:32]
User220914 - Posts: 170
Link to cme website about gateways

https://www.cmegroup.com/confluence/plugins/servlet/mobile?contentId=81362961#content/view/81362961
[2021-07-13 08:30:31]
Sierra Chart Engineering - Posts: 97762
The Market Segment Gateway offers absolutely no benefit over the Convenience Gateway for anyone submitting orders from the Internet.

The order routing is going to be very low latency, we expect below 300-400 µs (microseconds) and this is an overestimate and includes all risk management checks, before it gets to the exchange order matching processor. If you are submitting limit orders, you will have no advantage at all with the market segment gateway and with market orders you would only have an advantage if you are colocated with the exchange.

Already our Sierra Chart order routing, is known to be very fast. We have heard, it is the fastest. We have not done comparisons though but we are quite sure it is faster, than CQG and others. It is best just wait to do testing and you will see the performance is very good.
Sierra Chart Support - Engineering Level

Your definitive source for support. Other responses are from users. If possible please keep your questions brief and to the point. Please be aware of support policy:
https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation

If your question/request has been answered and you do not have anything further, then it is easiest for us if you do not reply again to say thank you.
Date Time Of Last Edit: 2021-09-12 01:25:31
[2021-07-23 14:42:32]
User220914 - Posts: 170
While I appreciate what you said it is incorrect. if i am competing with other internet users and if you understand what "BATCH" sending means and RANDOMIZATION of ALL ORDERS in the convenience gateway then you would never have really stated what you did.


ALL ORDERS IN THE CONVENIENCE GATEWAY are batched and randomized and DO NOT GET FIFO first in first out priority on the trade engine until they get to the MARKET SEGMENT GATEWAY! if this is not true then
1. the legal CME website is just plain lying and
2. all the professionals trading at prop firms via mouse click must have a reason for being on the MARKET SEGMENT GATEWAY.

I will still use your service for execution once it is set up and running but make no mitake about it there is a FIFO time stamp to the NANO SECOND as far as the que and if my competition is other mouse clickers looking at the same charts then priority and speed is all that i have as an advantage.

it is hilarious to me that so many people in the industry say well if you are mouse click trader then it doesnt matter. um.. whateve then why even try and have low latency to begin with?

Maybe one day you will offer the market segment gateways in say the e mini or the nasdaq. that would be great.

Many other services offer direct to the mkt segment gateway and MOST PROFESSINAL MOUSE CLICKING TRADERS USE the mkt segment gatteway to get that FIFO priority instead of a random batch send then time stamp. that is the main issue. I can buy before you and you might just get a better fill than me since it is randomly batched! now there are reasons for the hft that it is randomly batched but most don't understand the true arbs that are going on from the convenience to market segment gateway.

obviously you guys seem to be set on the convenience gateway which is the only place to start so maybe down the road it could happen.


I am still looking forward to using your execution services for a lot of reasons and mainly because you have always
put out excellent products at very good prices and i applaud all of you for that.

thanks
[2021-09-12 02:11:16]
Sierra Chart Engineering - Posts: 97762
The practical reality is this is 100% meaningless:
if you understand what "BATCH" sending means and RANDOMIZATION of ALL ORDERS in the convenience gateway then you would never have really stated what you did.

The basic reason is that you are not considering, data feed delays and data feed transmission times, and chart processing time, reaction time, other order processing times, and order transmission times, all before the order gets to the market segment gateway.

With Sierra Chart, the order processing and transmission time, is very minimal compared to everything else. So your order will get to the market segment gateway ahead of most if not all other platforms when using the direct CME routing.

Prove us wrong. Do not look at all of the information you are. Work with actual fact. We are looking at times, in the area of 250 to 300 µs for a market order to be delivered to the CME and get filled with Sierra Chart direct CME routing. That is fast. And we can take that even lower. We can probably cut 100 µs off of that further.

More information:
https://www.sierrachart.com/SupportBoard.php?PostID=277012#P277012
Sierra Chart Support - Engineering Level

Your definitive source for support. Other responses are from users. If possible please keep your questions brief and to the point. Please be aware of support policy:
https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation

If your question/request has been answered and you do not have anything further, then it is easiest for us if you do not reply again to say thank you.
Date Time Of Last Edit: 2021-09-12 02:17:08

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