GeoRumble

Attacking High-Frequency Trading Networks

via Schneier on Security on 1/12/11

Turns out you can make money by manipulating the network latency. cPacket has developed a proof of concept showing that these side-channel attacks can be used to create tiny delays in the transmission of market data and trades. By manipulating specific trading activities by several microseconds, an attacker could gain unfair trading advantage. And because the operation occurs outside the...