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White Papers
Measurement and Characterization of Latency in Trading Networks
The advent of algorithmic trading has made latency one of the most important performance metrics for market data dissemination and order management systems. System providers are under pressure from users to continuously reduce latency, and those who can demonstrate the fastest systems will achieve a clear competitive advantage. To exploit this advantage, service providers need to measure and communicate information about latency in a manner which users find easy to understand, and easy to compare across competing services. Ideally, this information could be suitable for inclusion in a service level agreement. But measuring latency and presenting the results in a clear intelligible fashion can prove trickier than expected.
