Archive for February, 2010

$100 Million Value of Shaving Milliseconds

Monday, February 22nd, 2010
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There are lots of different ways to deal with latency and bandwidth contraints, but some of them you might not appreciate.
In 1994, a typical web page was about 50 kilobytes in size and dial-up modems could transfer no more than three kilobytes a second. Under such conditions, Web sites were built to use few pictures, and to start loading in three or four seconds,with full rendering in 20 seconds.
These days, handshaking and other issues account for most of the experienced end user latency.
Round-trip latency for “handshaking” typically runs 700 milliseconds these days. In part, that is because of domain name server translations, even when servers are uncongested.
On the internet, the average latency for corporate websites in America is currently around 350 milliseconds, according to the Network Weather Report operated by the University of California, Los Angeles.
Google’s latency is 150 ms, Facebook’s 285 ms and YouTube’s 515 ms. Such latencies will have to come down considerably if the next generation of internet applications, such as telepresence, high-definition video streaming and remote surgery, are to fulfil their promise.
When shaving a millisecond off the time needed to execute automated trades can increase revenue by $100 million, there is plenty of incentive to build private optical networks with latencies approaching zero.
http://www.economist.com/science-technology/displaystory.cfm?story_id=15523761

There are lots of different ways to deal with latency and bandwidth contraints, but some of them you might not appreciate.

In 1994, a typical web page was about 50 kilobytes in size and dial-up modems could transfer no more than three kilobytes a second. Under such conditions, Web sites were built to use few pictures, and to start loading in three or four seconds,with full rendering in 20 seconds.

These days, handshaking and other issues account for most of the experienced end user latency.

Round-trip latency for “handshaking” typically runs 700 milliseconds these days. In part, that is because of domain name server translations, even when servers are uncongested.

On the internet, the average latency for corporate websites in America is currently around 350 milliseconds, according to the Network Weather Report operated by the University of California, Los Angeles.

Google’s latency is 150 ms, Facebook’s 285 ms and YouTube’s 515 ms. Such latencies will have to come down considerably if the next generation of internet applications, such as telepresence, high-definition video streaming and remote surgery, are to fulfil their promise.

When shaving a millisecond off the time needed to execute automated trades can increase revenue by $100 million, there is plenty of incentive to build private optical networks with latencies approaching zero.

http://www.economist.com/science-technology/displaystory.cfm?story_id=15523761


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Merrill Lynch Japan Securities Goes “Low Latency”

Monday, February 22nd, 2010
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Merrill Lynch Japan Securities has adopted an ultra-low latency electronic trading solution allowing  clients to trade from third-party data centers. The solution also allows users to access multiple exchanges from a single location by using brokers that have memberships in the exchange.
“In the past, clients looking for exceptionally low latency were limited to co-locating at specific exchange data centers in Japan,” says Carrie Cheung, director of Asia Pacific Electronic Trading at Bank of America Merrill Lynch. “Hosting there means access is limited to just one market and one broker, cost performance is not very efficient as well.”
“Latency-sensitive strategies will benefit from our state-of-the-art direct access platform and allow trading at speeds very similar to those of exchange co-location,” she says.
MLJS worked with KVH Co, a provider of network and managed IT services, and Activ Financial Systems, a low-latency market data provider, to develop the new platform.
http://www.techweb.com/article/showArticle?articleID=222700263&section=news

Merrill Lynch Japan Securities has adopted an ultra-low latency electronic trading solution allowing  clients to trade from third-party data centers. The solution also allows users to access multiple exchanges from a single location by using brokers that have memberships in the exchange.

“In the past, clients looking for exceptionally low latency were limited to co-locating at specific exchange data centers in Japan,” says Carrie Cheung, director of Asia Pacific Electronic Trading at Bank of America Merrill Lynch. “Hosting there means access is limited to just one market and one broker, cost performance is not very efficient as well.”

“Latency-sensitive strategies will benefit from our state-of-the-art direct access platform and allow trading at speeds very similar to those of exchange co-location,” she says.

MLJS worked with KVH Co, a provider of network and managed IT services, and Activ Financial Systems, a low-latency market data provider, to develop the new platform.

http://www.techweb.com/article/showArticle?articleID=222700263&section=news


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Low Latency Solution Adopted by Burgundy

Monday, February 22nd, 2010
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Fixnetix, which says it is the leading European provider of ultra-low latency co-location hosting, market data and trading infrastructure connectivity services, now offers a direct market data feed and trading access to Burgundy, the regional multilateral trading facility for Nordic securities.
Traders can use Fixnetix’s 10 Gbps point-to-point high-speed fiber backbone network to connect with the new trading platform, which is looking to reach a market share of 25 percent in Sweden this year.
Fixnetix also offers a direct market data feed from Burgundy, taking advantage of its high bandwidth provision to provide traders with realtime level one and level two market data exactly as it leaves the Nordic MTF.
“Fixnetix offers another important route for the growing number of investors demanding ultra-low latency access and market data from the increasingly fragmented Nordic equities market,” says Olof Neiglick, Burgundy CEO.
Fixnetix now operates some 18 co-location and proximity hosting centers across Europe and the United States, supporting trading across all the major cash equities, futures, FX, commodities and bond markets.
The company also offers both “raw and ultra low latency normalized” market data services, as well as low latency trading access for member firms and sponsored trading access to over 45 markets.
http://www.a-teamgroup.com/article/fixnetix-delivers-ultra-low-latency-trading-access-to-burgundy/

Fixnetix, which says it is the leading European provider of ultra-low latency co-location hosting, market data and trading infrastructure connectivity services, now offers a direct market data feed and trading access to Burgundy, the regional multilateral trading facility for Nordic securities.

Traders can use Fixnetix’s 10 Gbps point-to-point high-speed fiber backbone network to connect with the new trading platform, which is looking to reach a market share of 25 percent in Sweden this year.

Fixnetix also offers a direct market data feed from Burgundy, taking advantage of its high bandwidth provision to provide traders with realtime level one and level two market data exactly as it leaves the Nordic MTF.

“Fixnetix offers another important route for the growing number of investors demanding ultra-low latency access and market data from the increasingly fragmented Nordic equities market,” says Olof Neiglick, Burgundy CEO.

Fixnetix now operates some 18 co-location and proximity hosting centers across Europe and the United States, supporting trading across all the major cash equities, futures, FX, commodities and bond markets.

The company also offers both “raw and ultra low latency normalized” market data services, as well as low latency trading access for member firms and sponsored trading access to over 45 markets.

by Gary Kim

http://www.a-teamgroup.com/article/fixnetix-delivers-ultra-low-latency-trading-access-to-burgundy/


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