A couple of Technology Trends inside High-Frequency Trading

It was great to have back to the office after the Xmas break, forget about cold turkey! Setting out plans for the approaching year is the great opportunity to appear at what the commentators are saying will be the particular trends of the New Year. The particular buzz in the particular Higher frequency Trading room is all about the approaching regulation and Western Union MiFID two (Market in Monetary Instruments Directive) inside particular. I typically perceive regulation because a bad point, more work with no gain, but we would not have got the market fragmentation in Europe without MiFID; which out of cash the monopoly regarding country stock trades. 45% of typically the FTSE 100 stocks are actually traded away the London Stock Exchange. The Tabb Group, a consultancy, reckons HFT makes up about 56% of most equities trades inside the US and 38% in The european countries. The trend can easily only go 1 way with extra market players obtaining into the HFT style of investing.
Two technology trends to watch this particular 1 / 4
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Growth inside the market is excellent news for us within the technology space but we happen to be also seeing innovations in the Very low Latency Networking area that will have an effect on the infrastructure styles we are delivering. The first will be Precision Time Protocol (IEEE 1588, PTP) in silicon upon network cards plus the second will be purchase of Voltaire, susceptible to approvals.
Exactly what PTP means with regard to the Low Dormancy market.
Accurate way of measuring of latency accommodement. Traders will understand to micro-second just how long their posture changes take and will be capable to see arbitrage opportunities. The losers will have to get smarter which in turn is good for marketplace efficiency.
Consultants that have built a business on deploying estimated trade times by inserting probes and even parallel processing operates will have to be able to amend their technique because the system side will be producing accurate benefits, eventually!
The companies of network nucleus by-pass acceleration will be able to quickly and merely demonstrate the benefits of their technology, making it simpler in order to sell the idea. Who can argue along with figures that dependable that so a drop from 20ms to 9ms.
The particular other news with the end associated with last year was the purchase of Voltaire, the Infiniband system vendor, by si manufacturer Mellanox, the particular only other main player inside the Infiniband tech space. This particular consolidation in the markets will focus the particular attention on the furious Infiniband verses 10 Gigbait Ethernet, (10GbitE) debate. Seeing the vendors tossing stones at one particular another will be enjoyment but the Powerful Computing market will be big enough to assistance both technologies and even I think typically the High Frequency Investing market will perform typically the same.