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Low Latency Blogs

The concept of intelligent trading is gaining momentum as trading firms acknowledge that competitive advantage is no longer only about speed, but also about a flexible and scalable architecture that can handle Big Data and analytics on the fly using technologies such as in-memory data and complex event processing.

Big Data is growing in both volume and adoption, but it needs to be clean, synchronised, analysed and used sensibly in tackling business problems if it is to reach its full potential in the trading environment.

What a great way to get involved with a new company. After only a few weeks on board with The A-Team Group it was all systems go for our two flagship events in London last week, where we were able to showcase the range of industry debate around the market dynamics driving pre- and post-trade technology activity.

Statistics presented by MathWorks at this week’s A-Team Group Intelligent Trading Summit suggest a significant skills gap among UK graduates entering the financial services sector and a need to develop fresh skills in areas such as data science.

A-Team Group’s Intelligent Trading Summit dedicated to discovering What’s Next for Data Driven Trading Technology got underway with an inspiring opening keynote presentation from Alessandro Petroni, senior principal architect, financial services, at Tibco Software. Petroni discussed the need for intelligent trading, the challenges it presents and the value it offers. He also described the management of Big Data in motion and outlined a potential architecture for intelligent trading.

Today’s trading environment is ring-fenced by problems, but there are solutions and technologies that can revitalise trading and make it fit for purpose for next generation traders who are already immersed in technology. Presenting a keynote address at A-Team Group’s Intelligent Trading Summit, Steve Grob, director of group strategy at Fidessa, described what is going wrong in trading, solutions to solve the problems and the emergence of intelligent trading.

Perseus Telecom has closed the gaps between London’s trading markets with microwave connectivity linking the Equinix LD4 data centre in Slough, the NYSE data centre in Basildon, the London Stock Exchange (LSE) data centre and the City based London Hosting Centre.

McKay Brothers is shaving fractions of milliseconds off its microwave routes between US financial data centres as it begins to deliver its 2014 US Microwave Roadmap. The roadmap targets latency between Aurora in Chicago, Illinois and Secaucus in New Jersey at below 8.05 milliseconds and latency between Aurora and Carteret, New Jersey at below 8.00 milliseconds. These latencies are expected to be achieved gradually through the year as the company adds upgraded radio equipment from supplier Aviat Networks and reduces indirectness on its routes.

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.