Joe Hilt VP of Sales, North America, Hibernia Atlantic
Joe Hilt VP of Sales, North America, Hibernia Atlantic

Navigating the communications minefield: High performance connectivity for High Frequency FX trading

The Capital Markets landscape consists of a complete multi-asset, multi-partnered and multi-regional infrastructure in order to be profitable in today's market conditions. Trading execution venues, their participants and technology vendors must now all be at the front of technology advancements. However, the need to be in as many markets and to communicate to as many clients and partners as possible has made connectivity to market access a "mine field" of obstacles. In the second in our series on high frequency FX trading, Joe Hilt, VP of Sales, North America, Hibernia Atlantic, outlines some of the key issues facing FX trading firms who are planning how best to link their trading infrastructures to trading venues and what lessons they can take from latency, networking and trading connectivity developments in other markets.

First Published: e-Forex Magazine 38 / Features / January, 2010

In the previous decade, the capital markets trading infrastructure looked very different. Trading floors existed on exchanges, where the buy and selling of stocks, bonds, options and futures were negotiated for best prices. Having a high performance communication system meant having extremely fast and legible note takers along with a few loud voices.In today’s global marketplace, floor trading has become obsolete due to the demanding volume from the electronic trading era. High-speed, automated and algorithmic trading have set the next generation standard in finding best prices and executing better strategies across dozens of market centres.  The various market centres of Exchanges, ECNs, Dark Pools, Crossing Networks and the 10,000+ institutions that trade them, must continue to be fast and always faster in the processing of trillions of requests to buy and sell stocks, options, futures and currency contracts.Due to major economic turbulence and anomalies, the global capital markets community has...continued

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