Extremely high execution speed in electronic trading has been a priority of infrastructure and technology companies alike in North America this year.
Various methods of achieving low latency are now in operation, and today marks another example of a connectivity company responding to the demand for effective execution, a subject of great interest within the industry, which was discussed recently on the Forex Magnates Meet The Experts Forum.
Quincy Data, a company employing microwave technology rather than traditional cabling, has today announced that it has expanded its QED market data solution by unveiling a point of presence at the NJ2 data center in Weehawken, New Jersey, operated by the Savvis division of Century Link.
Race To Zero
According to Quincy Data, the result of this dedicated connection is that firms co-located in NJ2 can now receive select futures data from CME Group’s data center in Aurora, IL in 4.14 milliseconds.
The company considers its addition of NJ2 to be the latest milestone in the company’s strategy to level the playing field for all latency sensitive consumers of exchange data.
Quincy Data already offers a low latency market data connection between Aurora and 350 E. Cermak in Chicago at 185 microseconds, a further connection between Aurora and Carteret, New Jersey of 4.09 milliseconds and another between Aurora and Secaucus, New Jersey at a speed of 4.12 milliseconds.
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Whilst market participants in many other regions are becoming the subject of regulatory rulings, which are intended to stem the ongoing technology arms race which is giving high frequency traders in close proximity to the important executing venues and state of the art infrastructure what they perceive as being an advantage over others.
This practice has found itself the basis for a probe in Europe, leading to a stringent set of guidelines and regulations set in place by Germany’s financial markets regulator BaFin, and more recently the European Parliament itself, whereas North America continues to embrace such progress.
America Embraces Microwave
Microwave technology has many advantages, one being the lack of expensive cabling installations and resultant facilitation of connecting traders to venues, as pointed out by Exalt Technologies‘ HFT-orientated microwave project which commenced in June this year.
In the case of Quincy Data’s solution, the microwave network itself is provided by MacKay Brothers, whose long-haul microwave service between colocation centers in Illinois and New Jersey went live in July last year.
Stephane Tyc, co-founder of Quincy Data made a corporate statement today regarding the launch: “We are delighted to offer in the Weehawken colocation facility, select futures market data from CME Group exchanges including, Equity, Treasury, Energy, FX and Metals futures at the lowest known latencies.”
“Traders and risk managers recognize that best execution requires the timeliest data, and the timeliest data come from Quincy,” explained Mr. Tyc.
Mr. Tyc, who obtained his physics doctorate from Harvard University, has a background in trade execution and processing, having served on the DTCC Warehouse Trust Company Board of Directors for two years in an earlier part of his career, as well as having completed a 17 year tenure at BNP Paribas where he held the position of Managing Director, Equity Derivative Quantitative Research and Development, Global Business Management and Post Trade Services.