The 2018 film The Hummingbird Project tells the fictional story of two cousins who hatch an elaborate plan to build a fiber optic cable line between Kansas and New Jersey to gain a millisecond advantage on high frequency stock trades. While the movie itself is not based on true events, it explores themes around high frequency trading and the cutthroat environment of the financial sector that reflect reality.
Is The Hummingbird Project based on real people or events?
No, The Hummingbird Project is not based on a true story. The movie is entirely fictional. It was written and directed by Canadian filmmaker Kim Nguyen. The characters and storyline were conceived by Nguyen and the film’s writers. There were no specific real life events or people that inspired the movie’s plot.
That said, The Hummingbird Project aims to provide some real insight into the competitive world of high frequency trading. The arms race to build the fastest data transmission networks possible mirrors how financial firms invest heavily in cutting edge technology to gain split-second advantages on trades. So while fictional, it sheds light on factual realities about finance and technology.
What is The Hummingbird Project about?
The Hummingbird Project follows cousins Vincent and Anton Zaleski, played by Jesse Eisenberg and Alexander Skarsgård respectively. Vincent is an ambitious trader and Anton is an expert technician. Vincent convinces Anton to help him build a fiber optic cable line
between Kansas and New Jersey that will shave milliseconds off communication times between the stock exchanges.
Vincent’s plan is to profit off of enabling faster trades. He envisions making millions with their technological advantage. But their ruthless ex-boss Eva Torres, portrayed by Salma Hayek, looks to thwart their plans and has her own competing project to build a faster connection.
Much of the movie centers on the logistical challenges and opposition faced while trying to dig a tunnel through the Allegheny Mountains. Vincent and Anton use increasingly extreme measures to ensure the cable gets laid on time. The story culminates with Vincent conducting his first hyper-fast trades and realizing the costs of his obsessive quest.
How does it portray high frequency trading?
The core premise of The Hummingbird Project is highlighting the importance of speed when it comes to high frequency trading. Vincent’s entire scheme rests on the assumption that shaving a few milliseconds off network communication times will provide a meaningful edge.
In several scenes, the financial advantages of these tiny time savings are emphasized. Vincent claims a one millisecond improvement could be worth $300 million a month to their former employer. The movie also notes that the time it takes for data to travel between Chicago and New York was once 14 milliseconds, but is now down to 8. The intense competition to optimize these numbers is central to the plot.
Towards the end, Vincent conducts a series of trades once his new fiber optic line goes live. The camera rapidly cuts between screens showing his financial data. The quick cuts and urgent score aim to convey the frenetic energy and stress of high frequency trading. This provides viewers some taste of real trading floors.
Key facts about high frequency trading
- Relies on algorithms to conduct large volumes of orders in fractions of a second
- Accounts for over 50% of equity trades in the US markets today
- Seeks to profit off tiny price changes happening extremely quickly
- Speed is critical as positions are often held for seconds or minutes
How realistically does it portray the financial sector?
The Hummingbird Project exaggerates some elements of the financial world for dramatic effect, but other aspects aligned closely with reality.
On the unrealistic end, the lengths Vincent and Anton go to build their cable connection are beyond what firms would actually invest in. Given the costs involved, it would not make financial sense to undertake such an extreme project. The movie embraces its fictional liberties here to heighten the suspense and stakes.
However, the competitive culture depicted among traders and executives does reflect the real financial sector. Salma Hayek’s cutthroat character who values profits over people rings true. The pressure Vincent feels to succeed at all costs also aligns with the high stress environment of Wall Street.
The huge sums of money thrown around seem fantastical, but represent the immense size of financial markets. And the technological focus shows how investment in cutting-edge systems provides real advantages today.
Aspects of the financial sector accurately portrayed
- Hyper competitive culture among firms and traders
- Pressure on traders to perform and deliver profits
- Advantages gained from faster trade execution times
- Financial firms invest heavily in technology
Was there ever a real plan like in the movie?
No, there was never actually a plan to build an underground fiber optic cable line just for financial communication advantages quite like what was shown in The Hummingbird Project.
That said, the theme of finding ways to transmit data faster between trading centers mirrors reality. There has been a real “arms race” among trading firms and telecom companies to optimize speed.
Some key real projects aimed at boosting financial trading speeds include:
- Spread Networks built an 825 mile cable between Chicago and New York in 2010, setting a new speed record.
- Hibernia Express laid a transatlantic cable between London and New York in 2015 to reduce latency.
- McKay Brothers built microwave towers between Illinois and New Jersey offering a faster option than fiber.
So while the specific storyline was fictional, it was grounded in the very real quest to maximize trading speeds using communication networks.
Have other fictional movies explored high frequency trading?
Yes, there are a few other relatively recent movies that have explored the world of high frequency trading and examined issues surrounding financial tech and automation.
Notable fictional movies about high frequency trading
Movie | Release Year | Description |
---|---|---|
The Hummingbird Project | 2018 | Drama about building a faster fiber optic cable to profit off high frequency trading |
Margin Call | 2011 | Follows the early stages of the 2008 financial crisis at a large investment bank over a 24 hour period |
Floored | 2009 | Documentary about traders adapting to technological changes like automation on the Chicago trading floors |
Both Margin Call and Floored tackle Wall Street culture and include perspectives on automated trading technology transforming markets. While not the sole focus, high frequency trading plays a role in depicting the financial landscape.
Conclusion
In summary, while The Hummingbird Project is a fictional story and not based directly on reality, it provides an engaging look at concepts around high frequency trading and modern finance. Through its exaggerated drama it explores truthful themes of competition in the sector and the importance of speed with trading systems. Other movies have also used creative narratives to examine the impacts of technology on Wall Street trading floors. Ultimately, while not completely realistic, The Hummingbird Project offers a thought-provoking perspective on the world of finance and technology.