Trading in 24.2 Billionths of a Second

“In electronic trading, being first to the market allows you to be top in the order queue. Time is literally money, and in this competitive environment, every nanosecond counts. 25 Nanosecond data in, data out latency for LDA’s solution means the impact of the framework is virtually eliminated, allowing our ultra-low latency Raptor FPGA pre-trade risk management solution to reach previously unheard-of latencies.” — William Dallyn, Raptor, a product of Fusion Systems

“The STAC-T0 is modeled after the Chicago Mercantile Exchange and it is the absolute measure of how fast a trading platform can respond to a signal from the market over Ethernet. STAC-T0 measures the time between the transmission of a simulated UDP market data message into the system and receipt of simulated TCP order from the system, without the system performing any trading logic or market-specific protocol handling.” — Peter Lankford, STAC Director

Clay Millican holds the Top Fuel Record 330 MPH.
How Data Flows in a 24.2ns Tick-to-Trade System

“Tick-to-trade latency has several components. The speed of the firm’s business logic is crucial, but so is the speed with which the trading platform’s underlying hardware and software can get information to and from the business logic. This is the platform’s I/O latency. Just as innovations in telecommunications are creeping incrementally closer to light speed, innovations in networking and computing are shaving I/O latency down to smaller and smaller fractions of a second. While the communications effort is bounded by the speed of light, the computing effort is limited by the minimum possible scale of transistors and, perhaps ultimately, the divisibility of time itself. Thus, trading technology is simultaneously pushing toward the limits of both of Einstein’s great discoveries: relativity and quantum reality.”

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