The Hummingbird Project is a 2018 Canadian thriller film directed by Kim Nguyen. It stars Jesse Eisenberg, Alexander Skarsgård, and Salma Hayek. The plot follows two cousins who work on building a fiber optic cable line between Kansas and New Jersey that will give them an advantage in high-frequency trading. This high stakes project takes the cousins up against their former boss Eva Torres, played by Salma Hayek.
The film brings up intriguing questions about high frequency trading and the advantage of speed when it comes to trading stocks. Even a millisecond can make a difference. But is this technology-driven plot based on real events and technological advances? Let’s take a look at the facts behind the fiction.
Is high frequency trading real?
Yes, high frequency trading is very real. It refers to the use of sophisticated technological tools and algorithms to trade stocks, commodities, currencies and other financial assets at extremely high speeds.
High frequency trading has become more common over the past 15 years. It now accounts for over 50% of equity trades in the United States. Some key facts about high frequency trading:
- Trades are executed by advanced computer programs rather than human traders.
- Trades occur in microseconds or milliseconds, far faster than a human could execute them.
- The goal is to make small but consistent profits on a large number of trades.
- Firms involved in HFT invest heavily in low latency networks and proximity hosting to gain a speed advantage.
So in summary, the basic premise of gaining a trading speed advantage through new technology portrayed in The Hummingbird Project rings true. High frequency trading firms do invest millions to shave milliseconds off transaction times.
Major HFT firms
Some of the major high frequency trading firms operating today include:
| Firm | Background |
|---|---|
| Jump Trading | One of the largest HFT firms, accounts for over 20% of stock trades in U.S. |
| Virtu Financial | Another major HFT player, went public on the NASDAQ exchange in 2015. |
| Allston Trading | Chicago-based HFT firm, trades many asset classes. |
| Hudson River Trading | New York firm with London and Singapore offices, trades a range of assets. |
These firms and many others invest heavily in speed and have helped propel the rise of high frequency trading over the traditional human floor traders of past decades.
Is the specific cable project real?
While high frequency trading is real, the specific project undertaken by the cousins in the movie appears to be fictional. The film shows them pursuing a straight line fiber optic cable between Kansas and New Jersey to gain a speed advantage.
Research has not revealed any evidence of an actual similar cable project taking place. The costs and logistics make it an unlikely undertaking in real life.
Technical feasibility
However, the technical elements shown in the film are sound. Building such a targeted fiber optic line could in theory convey data faster under the right circumstances.
Some key technical points:
- Fiber optic cables do allow for ultra low latency data transmission.
- A straight line buried cable would provide lower latency than existing networking infrastructure.
- There are major logistical challenges to building long underground fiber links.
- Permission would be needed to cross private property and public lands.
So while the specifics of the cable project are fictionalized, the general technical principles are grounded in reality. The film takes some creative license in the execution.
Are the characters based on real people?
The characters also appear to be fictional, although they do represent some of the player types involved in high frequency trading.
Key characters:
| Character | Description |
|---|---|
| Vincent Zaleski | One of the cousins trying to build the cable, played by Jesse Eisenberg. |
| Anton Zaleski | Vincent’s cousin who initiates the cable project, played by Alexander Skarsgård. |
| Eva Torres | Former boss trying to thwart the project, played by Salma Hayek. |
Research into the cast and crew background does not reveal any direct real life parallels for these characters. They seem to be fictional people created to represent different roles and perspectives in the competitive world of high frequency trading.
Is the storyline based on real events?
While high frequency trading is real, the specific storyline involving the race to build a secretive cable link does not appear to be based directly on actual events. There are some interesting parallels and links to reality:
- The focus on gaining a speed advantage aligns with real firms’ obsession with latency.
- The insider trading schemes and shady tactics have echoes of real Wall Street scandals.
- The technical elements involved in building such a link are plausible.
However, the storyline itself seems to be an imagined and stylized depiction of the competitive extremes and battles taking place in the realm of high frequency trading. The director took factual pieces like latency reduction efforts and questionable ethics seen in the trading world, then built a fictional thriller narrative around them.
Conclusion
In summary, while The Hummingbird Project uses the very real world of high frequency trading as a backdrop, the specific story and characters appear to be fictional. The movie takes factual elements like the importance of speed and combines them with fictional storytelling for dramatic effect. So this serves more as a commentary on the state of finance using imagined narrative devices, rather than a true to life account of specific people and events. That said, it does offer an engaging and thought-provoking portrayal informed by realities of technology and trading.
