Hardware, Software, Middleware and Networks squeezing out the latency for faster FX

Hammering out the kinks in a trading workflow requires a comprehensive understanding of how latency can develop reports Dan Barnes.

Trading at high speed can deliver impressive returns but a single bottleneck or mistimed trade can be equally expensive. Traders must ensure that the latency between an order being sent and matched is as low as possible.  “FX is often one leg of an overall strategy and so the distance between those trades become critical from a risk perspective,” says Gil Tene, chief technology officer (CTO) at low-latency Java specialists Azul Systems. “When latency matters it is always about a window of opportunity which could open and close very quickly and markets could shift very quickly.” The key is to look at latency in a systematic way, understanding the latency profile of a firm end-to-end in order to identify, qualify and characterise the latency between specific segments in the technology chain.  Michael Cooper, CTO at trading network Radianz, part of BT Global Banking and Financial Markets says, “The Fix Protocol Language (FPL) Forum developed an approach which looked at...continued

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