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Anyone being paying attention to the news? Hibernia Atlantic’s Project Express. London-NY RTD of Sub 60ms. Have we started a HF Trading “Arms” Race?

(Last Updated On: September 13, 2011)

Anyone being paying attention to the news? Not the banking reforms, however Hibernia Atlantic’s Project Express. London-NY RTD of Sub 60ms. Have we started a HF Trading “Arms” Race?

Project express spoken about on Radio 4 Today program, http://tinyurl.com/5t6oblb, 23mins in & the Telegraph on Sunday, http://tinyurl.com/3gxs6ou

The first sub-sea TransAtlantic cable laying project in over a decade

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No, not really.

Sorry if I seem skeptical, but using Google…
Distance between London and NY is approximately 5567km
see: http://www.mapcrow.info/Distance_between_London_UK_and_New_York_US.html

Using an approximation of the speed of light being 3.0×10^5 km/s (3.8×10^8 m/s)

We see that a packet would take 5.567/300 or ~ 18.5ms to travel the distance.

That’s the theoretical minimum amount of time it would take just for the packet to go point to point over that distance. Add to this additional costs in terms of switching, and other delays in network traffic, YMMV when you look at the actual time between you and the exchange, assuming that you’re in NY.

Way too slow for any sort of HF trading. This is why the ‘big boys’ co-locate their trade systems at or near the exchanges.

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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