>UDP for reporting market data because you can't have any latency and TCP for >order placement That is my understanding as well. A recent summary from a company providing technology to the financial sector confirms this. https://www.pico.net/kb/what-are-the-relative-merits-of-tcp-and-udp-in-high-frequency-trading/
>Since HFT is sort of front-running the market but technically it's not so it’s >not illegal Not anymore. However, in 1837 the French government criminalized the private use of telegraphic machines, partly to prevent unfair advantages in stock markets. This law followed the 1834 optical telegraph hack, often cited as the first cybercrime, which involved an early form of "high‑frequency” trading. https://www.diva-portal.org/smash/get/diva2:2035158/FULLTEXT01.pdf Cheer, John From: Peter Gutmann <[email protected]> Date: Wednesday, 18 February 2026 at 09:12 To: [email protected] <[email protected]> Subject: [TLS] Re: forwarding draft-ietf-tls-mlkem-05 use case Viktor Dukhovni <[email protected]> writes: >This does not look to me like a compelling rationale. A high-frequency >trading system that does not route trades over a connection that was >established well before market open, and expects to beat the competition by >minimising connection establishment latency, is perhaps doing it wrong. For >already established TLS connections latency does not depend on which key >agreement group was used in the initial handshake. The following is some years out of date so things may have changed since then but HFT uses (used) UDP for reporting market data because you can't have any latency and TCP for order placement because you need reliability, but even that's modded TCP with anything that would introduce delays or stalls removed. The interesting stuff isn't the software but the custom hardware used to minimise any kind of delay, at the time eyewateringly expensive FPGAs (Virtex UltraScales) but now presumably ASICs. >One might also point out that the payload of high-frequency trades is not >likely to be a long-term secret. Since HFT is sort of front-running the market but technically it's not so it's not illegal, the secret may only be valuable for a few hundreds of milliseconds and even if you discover it you can't react fast enough to act on it yourself. As you mention above, the logical thing to do would be to set up the TLS connection before market open and not hope that your TLS handshake completes in time to get your urgent buy order through. Peter. _______________________________________________ TLS mailing list -- [email protected] To unsubscribe send an email to [email protected]
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