2 Technology Trends in High-Frequency Trading

It was great to have back to the particular office after the Christmas break, forget about chilly turkey! Setting out ideas for the coming year is a great possibility to appear at what typically the commentators are saying will be typically the trends of typically the New Year. The buzz in typically the High Frequency Trading space is all about the coming regulation and Western Union MiFID a couple of (Market in Financial Instruments Directive) inside particular. I typically perceive regulation as a bad thing, more work using no gain, but we might not possess the market fragmentation in Europe without MiFID; which shattered the monopoly of country stock exchanges. 45% of typically the FTSE 100 stocks have become traded off the London Share Exchange. The Tabb Group, an agency, reckons HFT makes up 56% of almost all equities trades within the US and 38% in The european countries. The trend could only go one way with more market players getting into the HFT style of buying and selling.
Two technology developments to watch this 1 / 4
Growth found in the market is great news for all of us within the technology area but we happen to be also seeing developments in the Low Latency Networking room that will impact the infrastructure models we are supplying. The first is Precision Time Protocol (IEEE 1588, PTP) in silicon in network cards and even the second will be purchase of Voltaire, be subject to approvals.
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What PTP means regarding the Low Dormancy market.
Accurate description of latency accommodement. Traders will realize to micro-second just how long their place changes are taking and even will be in a position to see accommodement opportunities. The duds will have in order to get smarter which in turn is good for marketplace efficiency.
Consultants who have built a company on deploying believed trade times simply by inserting probes plus parallel processing operates will have in order to amend their strategy because the system side will become producing accurate results, now!
The companies of network nucleus by-pass acceleration may be able to be able to quickly and simply demonstrate the benefits of their particular technology, making it easier to sell the strategy. Who can argue along with figures that dependable that so the drop from 20ms to 9ms.
Typically the other news at the end regarding last year was your purchase of Voltaire, the Infiniband infrastructure vendor, by si manufacturer Mellanox, the particular only other main player inside the Infiniband tech space. This specific consolidation of the market place will focus the attention on the furious Infiniband verses 10 Gigbait Ethernet, (10GbitE) debate. Watching the vendors throwing stones at a single another will be entertaining but the Top rated Computing market will be just right to assistance both technologies plus I think the High Frequency Stock trading market can do the same.

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