Michael Ourabah , CEO, BSO Network Solutions
Michael Ourabah , CEO, BSO Network Solutions

Latency and FX – Why it still matters

In every industry, there is always a milestone moment when network latency decreases in importance and is replaced by other IT purchasing considerations – for example, network reliability, overall cost, risk management or security.

First Published: e-Forex Magazine 71 / Expert Opinion / March, 2016

For the international FX community, this moment has yet to occur. The world of automated cross-regional trading operates differently to most asset classes. This is because of the intrinsic link between lower latencies and financial advantages. There are very few comparative commercial events where a single millisecond can have such a powerful impact.  Latency defines an individual company’s success or failure. It affects how trading firms develop their strategies. Latency is even fundamentally rewriting how financial exchanges run their operations and how they present their value to the global marketplace. A whole industry of specialist telecommunications providers, IT colocation operators and industry innovators has arisen to meet the relentless drive for faster data transmittance.  Latency matters – this is a fact that will never change and a statement that applies to both the institutional FX and retail markets. If the opposite was true, resources such as these would no longer...continued

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