The End of Net Neutrality Could Mean the End of Wall Street

["Dave Farber" <farber () gmail com>]

Begin forwarded message:

> From: Shannon McElyea <shannonm () gmail com>
> Date: July 6, 2018 at 1:11:35 AM GMT+9
> To: Dave Farber <dave () farber net>, Dewayne Hendricks <dewayne () warpspeed com>
> Subject: The End of Net Neutrality Could Mean the End of Wall Street
>
> fyi
> > https://medium.com/@SIIPCampaigns/the-end-of-net-neutrality-could-mean-the-end-of-wall-street-830f2f0b744f
> >
> > The End of Net Neutrality Could Mean the End of Wall Street
> > StrategyCampJun 11
> > <1*SmeltHB1QGH_AnPK0o4xNQ.jpeg>
> > The Federal Communications Commission’s repeal of net neutrality has gone into effect, and the consequences may 
> > extend beyond increased prices, slow service, and corporate driven access. The move to repeal net neutrality may 
> > represent Trump’s greatest attack on Wall Street and the global economy yet.
> >
> > According to Verge reporter Makena Kelly:
> >
> > “At its core, net neutrality means that all online traffic is treated equally. The rules put in place by Wheeler’s 
> > 2015 Open Internet Order prevented internet providers from throttling or blocking traffic or offering paid fast 
> > lanes…. As long as Wheeler’s classification was in place, it provided a strong legal backing for treating the 
> > internet as a public utility, along the lines of telephone service, electricity, and running water.
> >
> > The Pai order rescinds this classification in an attempt to return to what he often refers to as a “successful, 
> > light-touch regulatory framework.” … That means regulators have no legal basis to block paid prioritization, 
> > throttling, or other violations of net neutrality. In essence, carriers are free to do what they want, and any 
> > problems are left to the market to sort out.”
> >
> > The dominant narrative surrounding Net Neutrality has largely focused on how it’s repeal will affect individuals and 
> > various market entities. As CNN Reports, “The concern among net neutrality advocates is that the repeal could give 
> > internet providers too much control over how online content is delivered. It may also make it harder for the next 
> > generation of online services to compete if they have to pay up to be placed in a so-called internet fast lane.”
> >
> > There is no doubt that Net Neutrality has the potential to completely devastate how individuals and organizations 
> > interact, participate in national dialogues, and contribute to the economy. The nation should absolutely be 
> > concerned about the effects the repeal of Net Neutrality will have on the landscape of the internet itself.
> >
> > There is another danger, though, that is hiding behind this set of offensives that could serve to bring the nation 
> > and our global allies to it’s knees.
> >
> > In 2014, a man by the name of Michael Lewis published a Book entitled Flash Boys. In this book he describes how 
> > stock market trading can, and is, rigged in such a way that traders can exploit the market by using something called 
> > High Frequency Trading.
> >
> > As NPR reports, “High-frequency trading, in which the fastest computers with the highest connection speeds get the 
> > information first, and make the trade before anyone else can. A millisecond — even a nanosecond — can make all the 
> > difference between how much money is made or lost on any transaction.”
> >
> > At the time the book was written, a handful of traders were hoarding these milliseconds. Lewis explains:
> >
> > “What turns out is happening is he’s sitting physically in lower Manhattan when he makes his trades. When he pushes 
> > the “buy” button, the signal from his computer travels up the fiber optics along the west-side highway of Manhattan 
> > and through the Lincoln Tunnel. On the other side of the Lincoln Tunnel is one of the 13 stock exchanges, called the 
> > BATS Exchange founded by high-frequency traders.
> >
> > They’re sitting there, and they get the signal that he wants to buy first. … They can see what he wants to do.”
> >
> > Speed became such an important issue, it even factored into the adoption of a new operating system on Wall Street 
> > called Linux.
> >
> > Just as Linux was taking over Wall Street, PCWorld reported:
> >
> > “As late as 2007, Wall Street exchanges were still largely run on Unix, such as Hewlett-Packard’s HP-UX, IBM’s AIX, 
> > and Sun Microsystems’ Solaris. Over the past few years however, Linux crept into this market, showing up first in 
> > ancillary systems and then running a few core exchanges…
> >
> > The largest exchange, the New York Stock Exchange (NYSE) Euronext, is run on a Linux system that can generate 
> > 1,500,000 quotes and process 250,000 orders every second, offering acknowledgments of each transaction within two 
> > milliseconds.    <snip>



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