In the search of low latency, every millisecond counts for traders and market makers trading and pricing assets around the world. While underground fiber optic cables are the leading conduit for connecting data networks, the fastest routes are with over ground microwave technology. As a conduit of data, light transmits through fiber optic cables slightly slower than through air. As a result, data networks that are connected through microwave transmissions can provide greater speeds.
Overall, microwave transmissions are able to send data up to 40% faster than through fiber connection. However, microwave networks require unobstructed routes between transmission towers, which often limit them to shorter distances. Where fiber excels is in these longer stretches, as well as going through oceans where it can pass through underground with no obstructions.
Due to the speed advantage, but limited by natural obstructions that can detract its effectiveness, microwave data networks have gained a niche among the high speed trading world for connecting close proximity financial centers. Among them, the New York to Chicago path is the most notable, but others are also springing up across Europe to connect key trading hubs.
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Announcing an expansion of the microwave networks in Europe, McKay Brothers and Interxion have partnered for the roll out of the low latency network between London and Frankfurt. The route uses microwave transmission technology from McKay Brothers, while relying on Interxion’s Central London data center for co-location.
For traders, the new route provides the ability to co-locate their trading servers using Interxion’s data locations, while connecting to Frankfurt and other European financial centers using McKay Brothers’ microwave technology.
Commenting on the news, François Tyč, Managing Director at McKay Brothers, stated, “Our market-leading microwave technology provides extreme low latency connectivity to help our customers manage risk more effectively and execute on strategies. We connect locations that matter to our clients, and we know that the link between Interxion’s London data centre and Frankfurt is one of the single most important in Europe. Many of Europe’s leading financial services companies are situated in Interxion’s data centres, and we are excited to offer reliable, extreme low latency services to this new and growing market.”
William Fenick, Strategy and Marketing Director, Financial Services at Interxion, added, “McKay Brothers’ range of product offerings is democratising financial services and making the benefits of low latency available to all. As the leader in microwave technology, McKay Brothers has an established track record of excellence and reliability, and its technology will create significant added value for both new and existing financial services customers in Interxion’s London data centre to help them stay ahead in a dynamic and ultra-competitive market.”