TAAB Group: The Value of a Millisecond: Finding the Optimal Speed of a Trading Infrastructure
Latency, or rumors of it, is a destructive force that can incapacitate a trading firm at any time. Markets are increasingly fragmented and reliant on multi-tasking applications and connectivity to unite them. The analysis of these disparate sources of liquidity is one of several challenges to traders of all stripes. Among those market participants aiming for first place, the ability to quickly process, analyze and react to the onslaught of data is a critical component of their competitive advantage. Whether those market participants are exchanges trying to attract liquidity, hedge funds seeking alpha or algorithms chasing best execution, speed is a necessary trait for survival.