Broadband wireless equipment and network provider NeXXCom Wireless has published a white paper discussing the advantages and disadvantages of various radio frequency (RF) technologies when designing high frequency trading networks. The white paper highlights wireless technology platforms from NeXXCom that are designed to offer significantly reduced latency for high frequency traders.
"Wireless is not new; what is new is the development of the digital signal processing necessary to achieve ultra low latency suitable for use in high frequency trading (HFT)," explains Sal S. Benti, chairman of NeXXCom Wireless. "Many factors must be considered to effectively use wireless in a latency sensitive network, beyond just the latency in the RF link."
The premise of NeXXCom's white paper is thus: With fiber-optic and wired solutions experiencing an approximate 33% media loss penalty, wireless technologies are emerging as the improved low latency solution. The white paper outlines a variety of factors, including availability, reliability, bandwidth, device latency injection, network handoff and serialization; NeXXCom explains how its technology takes these factors into consideration, as well as the necessary network architecture, to offer a fast and optimal system implementation.
Benti continues, "NeXXCom is achieving the lowest latency systems by maintaining IP standards that maximize the modulation benefits for link performance in long-haul high frequency trading. Using our OSI Layer 1 technology, we avoid unplanned latency and offer customers the highest quality solution and the lowest latency through the trade execution platform."
NeXXCom notes that it also offers a Metro HFT platform using a millimeter wave radio with a blend of modulation and error coding technologies at OSI Layer 1 Gigabit Ethernet. This combination of capabilities allows radios with per device latencies ranging from 10nS to less than 5µS per device; the result is typically 50% of the latency of the best incumbent fiber solution, according to the company.
To receive the free NeXXCom Wireless whitepaper, email [email protected].
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