The world’s financial communication networks are a paradigm of the modern world, and they operate at very high speeds through necessity, often using fiber optic technology. So fine are the lines between success and failure in today’s trading environment that just tiny fractions of seconds do matter. When financial institutions trade via these networks, shaving microseconds off network latency can result in a significant competitive advantage and millions of dollars annually. To reduce latency, one must understand the factors that can cause latency.
