Join the Community

23,657

Expert opinions

40,492

Total members

380

New members (last 30 days)

204

New opinions (last 30 days)

29,173

Total comments

Join Sign in

Low latency in the real world

12 October 2009 1 comment

Elizabeth Lumley

Global FinTech Commentator

Girl, Disrupted

Many trading strategies and volumes change throughout the day resulting in uneven latency requirements. This is the real world reality of low latency. The vendors that claim ultra-low latency are offering speeds that, most likely, were achieved in closed, clinical, laboratory conditions.

A dealing floor is an irregular environment where programme trading strategies are constantly changing.

The demands of low latency networks in order to support algorithmic trading are causing the big banks to build their own networks and feed handlers in-house.

The real ‘low latency' vendor race will probably not be with the providers but within testing and monitoring tools to ensure best practice for ultra low latency networks.

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

3687

Report

Channels

Comments: (2)

Brennan Carley Managing Principal at Proton Advisors

13 October 2009

Agreed that predictable latency is as important as low latency. Which is why the exchanges are now starting to talk about std deviation of latency or latency at the 80th/90th percentile and not just average latency.

But what evidence is there of big banks building their own networks and feed handlers in-house?

Report

Elizabeth Lumley Global FinTech Commentator at Girl, Disrupted

Author 13 October 2009

"But what evidence is there of big banks building their own networks and feed handlers in-house?"

I've spoken to them (off the record - unfortunatly)

Report

Elizabeth Lumley

Global FinTech Commentator

Girl, Disrupted

Member since

05 Nov 2007

Location

Crayford

More expert opinions

Rajat Deshpande CEO and Co- founder at FinBox