Two Technology Trends throughout High-Frequency Trading

It was great to have back to the particular office following the Christmas break, forget about cool turkey! Aiming programs for the forthcoming year is a great possibility to appear at what the commentators are declaring will be the trends of the particular New Year. Typically the buzz in the particular High Frequency Trading space is centered on the arriving regulation and European Union MiFID two (Market in Economical Instruments Directive) inside particular. I typically perceive regulation as a bad issue, more work along with no gain, but we would not include the market fragmentation in Europe with no MiFID; which got destroyed the monopoly regarding country stock exchanges. 45% of the particular FTSE 100 stocks are traded away from the London Inventory Exchange. The Tabb Group, a consultancy, reckons HFT accounts for 56% of all equities trades within the US in addition to 38% in The european countries. The trend can easily only go 1 way with additional market players receiving into the HFT style of investing.
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Two technology styles to watch this kind of 1 / 4
Growth in the market is great news for people inside the technology room but we happen to be also seeing innovations in the Minimal 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 about network cards plus the second will be purchase of Voltaire, controlled by approvals.
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 in a position to see arbitrage opportunities. The perdant will have in order to get smarter which is good for marketplace efficiency.
Consultants who have built a small business on deploying believed trade times by inserting probes and parallel processing runs will have to amend their method because the system side will become producing accurate results, finally!
The companies of network kernel by-pass acceleration will certainly be able to be able to quickly and basically demonstrate the advantages of their technology, making it easier in order to sell the strategy. Who can argue using figures that trusted that so the drop from 20ms to 9ms.
Typically the other news at the end of last year was the purchase of Voltaire, the Infiniband structure vendor, by silicon manufacturer Mellanox, typically the only other key player inside the Infiniband tech space. This consolidation in the market will focus typically the attention on the furious Infiniband poems 10 Gigbait Ethernet (10GbitE) debate. Watching the vendors tossing stones at a single another will be fun but the High end Computing market is definitely not too young to assistance both technologies and even I think the particular High Frequency Trading market will do typically the same.