An Adaptation From ‘Flash Boys: A Wall Street Revolt,’

The trouble with the stock market — with all of the public and private exchanges — was that they were fantastically gameable, and had been gamed: first by clever guys in small shops, and then by prop traders who moved inside the big Wall Street banks. That was the problem, Puz thought. From the point of view of the most sophisticated traders, the stock market wasn’t a mechanism for channeling capital to productive enterprise but a puzzle to be solved. “Investing shouldn’t be about gaming a system,” he says. “It should be about something else.”

via An Adaptation From ‘Flash Boys: A Wall Street Revolt,’ by Michael Lewis –

The same system that once gave us subprime-mortgage collateralized debt obligations no investor could possibly truly understand now gave us stock-market trades involving fractions of a penny that occurred at unsafe speeds using order types that no investor could possibly truly understand. That is why Brad Katsuyama’s desire to explain things so that others would understand was so seditious. He attacked the newly automated financial system at its core, where the money was made from its incomprehensibility.

Update:  For some highly technical information on High Frequency Trading I was pointed to this set of articles from ACM, Association of Computing Machinery.

What’s NFV All About?

The white paper usefully explains the relationship with software-defined networking (SDN): “Network Functions Virtualisation aligns closely with the SDN objectives to use commodity servers and switches,” but importantly notes that NFV “goals can be achieved using non-SDN mechanisms.”

The white paper is available right here.

via Light Reading – What’s NFV All About?.

Startups and Patent Trolls by Colleen Chien

I find that although large companies tend to dominate patent headlines, most unique defendants to troll suits are small. Companies with less than $100M annual revenue represent at least 66% of unique defendants and 55% of unique defendants in PAE suits make under $10M per year. Suing small companies appears distinguish PAEs from operating companies, who sued companies with less than $10M per year of revenue only 16% of the time, based on unique defendants. Based on survey responses, the smaller the company, the more likely it was to report a significant operational impact. A large percentage of responders reported a “significant operational impact”: delayed hiring or achievement of another milestone, change in the product, a pivot in business strategy, shutting down a business line or the entire business, and/or lost valuation. To the extent patent demands tax innovation, then, they appear to do so regressively, with small companies targeted more as unique defendants , and paying more in time, money and operational impact, relative to their size, than large firms.

via Startups and Patent Trolls by Colleen Chien :: SSRN.

Main Linux problems or Why Linux is not (yet) Ready for the Desktop, 2012 edition

In this document we only discuss main Linux problems and deficiencies while everyone should keep in mind that there are areas where Linux has excelled other OSes (excellent package management, usually excellent stability, no widely circulating viruses/malware, complete system reinstallation is not required, free as a beer).

This is not a Windows vs. Linux comparison however sometimes I make comparisons to Windows or MacOS as the point of reference (after all their market penetration is in an order of magnitude higher).

via Main Linux problems or Why Linux is not (yet) Ready for the Desktop, 2012 edition.