Financial hosting and infrastructure is ‘survival of the fastest’

17/02/2015

ED&F Man Capital Markets, the global financial brokerage business, believes many financial traders are losing out because they fail to optimize their systems to achieve low-latency trading.

As an expert provider of financial hosting solutions, ED&F Man Capital Markets has issued a white paper to help traders gain a better understanding of how to improve their own trading setup. The white paper looks at the factors impacting the time it takes for order messages and price date to move in-between an electronic trading platform and a Financial Exchange’s matching engine.

In the paper, the key layers of communication for traders are outlined with an explanation of how to optimise each to enhance the speed of message transit:

  • Execution Platform
  • Operating System
  • Computer Hardware
  • Local Network Infrastructure
  • Wide Area Network
  • Exchange Matching Engine

At each stage, investors will be able to identify which stage of their own setup could prove to be the speed inhibitor, potentially losing them valuable time and therefore investment returns. 

Commenting, Mike Mallahan, Chief Information Officer, said:

“Since the markets began, traders have fought to be the closest to the deal. Today is only different in that we compete in nano and micro seconds, rather than minutes and hours.

“Every investor and trader is unique in how they make decisions on their investments and portfolios. However, the process by which they all make trades is common to large blue chip institutions through to amateur investment groups and individuals.

“Time is money and our paper provides an overview of the layers that need to be optimized to maximise the speed of the communications at which information is sent and received.”

The White Paper is available for download, free of charge, at http://www.edfmancapital.com/infrastructure/corporate-information/news/2015/.