Wednesday, August 08, 2012
Could GPS Spoofing Cause Another Flash Crash?
The Big Picture writes Could GPS Spoofing Cause Another Flash Crash?. Many financial systems use GPS to get accurate timestamps (GPS works by putting atomic clocks in satellites and broadcasting timestamps, your GPS clock is the most accurate you have). It turns out civilian GPS is easy to spoof, just fly a drone and broadcast fake timestamps. Apparently the major exchanges protect against this (not sure how, maybe they have their own atomic clocks) but high frequency traders (who really demand nanosecond accuracy) who are co-located to exchanges (to keep wires short) may be vulnerable.