Source: Anova Technologies
Anova Technologies, a custom optical engineering firm, will now offer ultra-low latency connectivity between 755 Secaucus and 545 Washington, both key institutional FX ECNs.
As is standard for Anova, this route enables clients to gain a significant speed advantage. With SLAs tightly tied to leading-edge latencies, this Anova path will clock in 15 percent faster than the competition, verifiable via advanced OTDR and RFC 2544 testing.
FX Markets Volume
"We've optimized the connection between these two expanding pools of FX liquidity," states Michael Persico, CEO and founder of Anova Technologies. "The foreign exchange markets have exploded in the last few years, evolving their execution landscape to enable those that react first to profit most. This is what electronic, and specifically algorithmic, trading did for the equity markets. Now it's doing it in the foreign exchange markets, which will continue to grow in volume. And until now, we feel they have been latency under-served."
The daily volume of the foreign exchange markets dwarfs that of all the equity markets combined by more than 10 times, weighing in at over $4 trillion. This is up from previous years, and continues to rise. These markets operate around the clock six days a week, with London and New York accounting for nearly half of all the global turnover. Additionally, it is projected that by 2012, over 40 percent of all FX volume will be high frequency trading.
Algorithmic Trading in the FX Markets
"This is enormous volume with fierce competition," Persico continues. "And as more traders utilize strategies to exploit opportunities that exist for microseconds via automation and algorithms, latency becomes paramount to success. Much of it has to do with the inherent nature of ECN operation in that data is aggregated and viewed side by side, so any discrepancies in timing or quality will have negative order execution implications for those that lag behind. Basically, consistent and predictable fills depend on ultra low latency."
This service is offered starting mid-November 2011.