Comment A question about TCP/IP (Score 1) 48
The TCP/IP protocol seems to be an inherent barrier to high-speed trading. That is, the purpose of the protocol is to be a) redundant b) insure that the message is sequentially ordered c) error-checked. Specifically, if you have a hardware speed-up or place servers closer to the exchange -- or any other physical process that reduces the time of execution -- you still may be inherently slowed by the process of actually exchanging information between servers. So, was wondering how high-speed trading firms get around this protocol?
(Yes, I've googled this and have found quite a few links to explain this. But I was wondering if there are actually any people who work on this problem who could briefly explained the strategies involved.)