Do you feel the need for speed? Hedge funds and other traders do - and now some of the largest participants in US capital markets will adopt a new system that dramatically cuts the time it takes to trade and communicate with each other, the FT reports.
The system, Radianz Ultra Access, will reduce transaction times to just 1 millisecond from about 10 milliseconds at present. That’s down to a mere thousandth of a second, which might just be quick enough to satisfy the ever greater need for speed amongst sophisticated traders.
Institutions that have signed up to use the system already include the NYSE, Nasdaq, Boston Options Exchange, BATS electronic communications network, and the International Securities Exchange, among others.
Tom Price, senior analyst in the securities and capital markets practice at the Tower Group consultancy, said: “Speed is a competitive differentiator for market participants using advanced trading strategies. The ability to consume massive amounts of data, translate it into opportunity, and get orders to the appropriate execution venue ahead of the competition, is key to success.”
These days, the returns are to the swift.
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