Tata Communications has launched a low-latency network which will increase the speed in high frequency trading.

The network will enable financial firms to execute a high frequency trade between locations, through a single network and single supplier model. The network will help connect major financial capitals in Asia, the UK and the US.

Latency is the time taken for packets to reach the institution's server from the original server. High frequency trading is a quantitative trading tool that uses computer algorithms to analyse market data and deploy appropriate trading strategies. It helps minimise cost of trading and trade execution.

Mr John Hoffman, Head of Ethernet Product Management, Tata Communications, said: “Global financial trading firms initially drove the need for this solution as every millisecond of latency is critical for trading. However, due to rising complexity and importance of specific mission-critical applications, we are also seeing an uptake in demand for similar levels of latency from a growing range of sectors and businesses.”

Customers can build multipoint low latency networks that communicate from city-to-city rather than exchange-to-exchange to serve applications for which latency is crucial, regardless of the software or trading platform used, said a release from Tata Communications.

The multipoint ethernet service is expected to offer up to 35 per cent savings on circuit and operations costs. Customers can also upgrade their bandwidth “without causing a service outage on their network.”


(This article was published on June 13, 2012)
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