Adam Hawley Director & Chief Operating Officer of Caplin Systems
Adam Hawley Director & Chief Operating Officer of Caplin Systems

Trading Latency – an e-problem seeking a technology solution

Adam Hawley looks at the technology issues surrounding the use of the Internet as a connectivity channel for services such as low-latency messaging.

Following many years of reluctance from within the industry in using the internet for low La-tency trading applications, there are now many high-end, web-based FX Trading solutions in production. These services are using the internet for both the Executable Streaming Prices (ESPs) and subsequent transaction message flow. However, the current surge in demand for differentiating functionality being placed on all FX trading services, particularly that of low-latency messaging, means that the technology issues surrounding using the internet as a connectivity channel require special consideration.Perhaps the main factor behind the emergence of this e-trading problem is that, despite the new func-tionality and new products being provided to the FX trader, trading margins remain static or are re-ducing. This is forcing the aggressive targeting and capturing of additional and fragmented order flow to maintain profitability and growth, with the internet now seen as crucial to this initiative.In turn, having developed...continued

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