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How to use Low latency networks for “last mile” loops

(Last Updated On: June 22, 2012)

How to use Low latency networks for “last mile” loops

Is there a need or demand for ultra low latency connectivity between say a hedge fund operation and a nearby data center where the trading networks and market feeds are accessed? It would seem if the critical computing power is already on site at the data center, such connectivity would not be needed. However, is this the preferred or the usual model?

 

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In my experience most shops simply remote control their machines at the trading facility with ssh or remote desktop using commodity lines such as Cogent 100Mbps in-building ethernet, Verizon Fios, even Time Warner Business cable. Not many hedge funds have dedicated fiber between their office and their Colo. Just not needed really. The ones that do are so large they don’t care about the expense (think having a $10,000 per month spend if you’re a start up fund or prop shop right now!!!) or they actually have transactional processing in the office and need to upload data sets to the colo that developers are working on in the office (very rare, imho). I’m sure you’ll find some that just “want the best” to go with their Managing Partner’s Gulfstream V and Domaine de la Romanée-Conti Collection!

 

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most of the in-metro low latency needs tend to be between matching engine/exchange colo locations in geographies where there are multiple sites of this type, rather than from these to office buildings – although I’m sure individual businesses vary on that sometimes.

 

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thanks very much for your responses. They are very helpful. I welcome comments from others in the forum.

 

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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