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An article relating to this blog post on Finextra:

Morgan Stanley to measure latency performance with Corvil

Morgan Stanley is to use latency monitoring technology from Corvil to analyse and optimise data transmission speeds from its market data plants in New York and London and to and from execution venues.


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Low latency in the real world

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.

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Comments: (2)

Brennan Carley
Brennan Carley - Proton Advisors - New York 13 October, 2009, 13:54Be the first to give this comment the thumbs up 0 likes

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?

Elizabeth Lumley
Elizabeth Lumley - Girl, Disrupted - Crayford 13 October, 2009, 15:18Be the first to give this comment the thumbs up 0 likes

"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)

 

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