Tuesday, May 16, 2017

High Frequency Traders Turn to Towers for Competitive Advantage

According to Information Week Magazine: “A one (1) millisecond advantage in trading applications can be worth $100 million a year to a major brokerage firm.”  In the wireless arena it is referred to as “latency,” i.e., how much time it takes for a packet of data to get from one designated point to another.
 
Traders making millions of transactions a minute recognize the superiority of wireless for sending and receiving data. Jump Trading LLC recently installed microwave antennas across the street from the data center operated by CME Group, the world’s biggest futures exchange located just outside of Chicago. The development was precipitated by the need to submit trades faster, and the company is not alone. Many companies are installing microwave equipment around the facility to stay ahead of other competition. According to ZeroHedge.com, faster data transfers can make the difference between billions in profits or losses for traders. Placing microwave towers close to the CME data center, reduces the amount of time data is transferred by fiber-optic cable, and allows trading firms to operate faster. Continue Reading

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