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White Papers
- Nanosecond Latency Management
- Latency Management For Co-Location Trading
- Clock Synchronization
- Unified Latency Management
- Inter-Party Low Latency Management
- Managing Performance in Financial Trading Networks
- Measurement and Characterization of Latency in Trading Networks
- Analysis for Low Latency Trading Networks
- Traffic Conditions in Modern IP Networks
White Papers
Inter-Party Low Latency Management
No single party controls the full end-to-end path for electronic trading or market data delivery. Many members of the trading industry have invested substantially to reduce latency within their own infrastructure; but ultimately everyone remains dependent on partners to ensure adequate end-to-end performance. Participants today have little visibility into sources of latency outside their own four walls. Traders can monitor order-entry round-trip latency, but finding out where this latency is incurred is much harder - in your own infrastructure, across a service provider’s network, or in the market center itself? The latency experienced by unidirectional market data traffic is a particularly frustrating blind-spot for all parties.
This situation leads to nervousness, and sometimes to finger-pointing. In recent polls by low-latency.com, 55% of respondents felt that their market data providers should do more to reduce latency, and 87.5% felt that market centers and exchanges are not pulling their weight when it comes to latency. These polls were informal but are corroborated by our own conversations with industry participants. Traders worry that important investment decisions about where to co-locate and which systems to upgrade might be misguided, or could be nullified by a lack of corresponding commitment from their partners. And they also worry that inequitable treatment might leave them at the mercy of other market players.
