Have We Reached a Tipping Point?
TABB’s new study reviews the concept of speed, latency, and time to provide fresh insight into how to think about trading in an increasingly speed and time/latency-dependent world. New market models and shifting structures are making this data more complicated, interrelated and crucial for market participants to understand. As report author and TABB CEO Larry Tabb details, the impact of speed on our financial markets is constant given that the increasing price for performance of technology means that data can be analyzed more quickly, prices can be managed more closely and hedging strategies can be implemented more accurately.
The research explains that as speed differs depending on the product, technology, market, connectivity and message volume, nothing is universally consistent and everything must be continually measured. This opens up the door to what Tabb calls “Speed II,” which revolves around understanding the dynamics, timeliness, measurability, auditability and transparency of speed and latency.
“Platforms that can provide firms with better fine-grained speed/time transparency and manage machine-time intelligence will help businesses successfully navigate the new challenges of the Speed II era.”
Larry Tabb, CEO and Founder