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Comment by TheNanex | Hacker News Reader

The SIP (consolidated feed) is tasked with using the most efficient hardware and software available. If a private company can consolidate faster than the SIP, then the SIP isn't using the most efficient hardware and software available now is it?

Pretty simple.

The exchanges take in $500M a year in SIP fees, which are supposed to go to the most efficient hardware and software available. Pretty sure that's not happening.

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> Pretty simple.

Oversimplification, forgetting the laws of geometry and physics.

The triangle inequality and relativity conspire against the SIP. If you're getting the SIP from B, any new prices at C go to B and then forwarded to you, so it's faster (best case equal in the degenerate triangle case) to get direct feeds from B and C and consolidate locally.

Not to mention the CAP theorem. For the SIP to work you have to have a much stronger consistency model across many more nodes. To arbitrage latency in it you need neither.

Are you saying the SIP runs on the best hardware/software available? I want to get that cleared up before moving on to a new topic.

I don't know about the hardware being used by the SIP. It might very well be very slow hardware. You clearly have a lot more knowledge than I do and have done some very good research.

I was just pointing out that

> If a private company can consolidate faster than the SIP, then the SIP isn't using the most efficient hardware and software available now is it?

is faulty reasoning.

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