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Low Latency Blogs

As trading firms look to improve business performance, perhaps using sophisticated strategies running at speed, and regulators demand increased transparency and integrity across trading environments, the need is for tools that can monitor and analyse complex business flows. IntelligentTradingTechnology.com spoke to Velocimetrics’ CEO Steve Colwill about the need for real-time business insight and how it can be achieved.

By Jamie Oschefski, Head of Accounts and Strategic Partnerships, Quantica Trading

It is becoming clear the latency arms race is quickly becoming a theme of the past. The fastest microwave networks between Aurora, Ill., and Carteret, NJ, is currently clocked at about 4.14ms (one-way), where the theoretical minimum is 3.95ms based on the speed of light. With only 0.19ms of improvement, this variable is fast approaching the physical limitations of the universe set by quantum mechanics and relativity. The unimaginable barriers to entry and exorbitant overhead in maintaining and advancing the infrastructure and technology required to keep a competitive edge, only a few trading firms can play in the space.

Perseus Telecom, a privately held provider of high speed global connectivity, has acquired TLV Networks and its ultra-low latency microwave connectivity between CME’s Aurora data centre and ICE at Equinix’s 350 Cermak Road data centre in Chicago.

This week, we’ve been banging on about the lineup for our inaugural Intelligent Trading Summit in London next Tuesday, offering a bit of a taster of what to expect from the day’s panel discussions. It’s worth pointing out, though, that we’ve also managed to line up some great keynote presentations from industry people we have a lot of respect for.

Amazon’s AWS (for Amazon Web Services) cloud platform has been around for a few years now – it was launched in 2006 by the online retailer then looking to make use of its spare IT capacity – and has been increasingly used by financial markets players looking for less expensive compute and storage resource. Recently, however, it has added a number of offerings that could make it very attractive to those in our space looking to manage big data sets and crunch analytics. It’s also begun to showcase third party solutions relevant to the financial services community.

Ciara Technologies always strived to conquer different markets, and diversify its offering without losing sight of its customers’ needs. Although this path can be more complex than others, it has led us constantly to address new customer challenges, and pushed us to maintain high levels of competency.

Has the industry finally reached a cost tipping-point where we will see more wholesale adoption of managed services and cloud capabilities, or are other benefits now outweighing pure cost considerations?

One of the hottest topics in the industry right now is whether the ability to leverage Big Data in the trading environment, with the use of more sophisticated analytics, will deliver real competitive advantage.

Latency measurement is an established practice that has been used with great success to optimize trading connections for business advantage, but will operational analytics become the next big business differentiator?