Low Latency News

Fiber-optic communication is a method of transmitting information from one place to another by sending pulses of light through an optical fiber. This is important to note when discussing the variables that affect latency.

Distance

dark fiber image.jpgThe definition of zero network latency would be network transport at the speed of light. That said, the further the light has to travel the higher the latency. Obtaining just a fiber connection from point A to point Z is no longer sufficient to ensure optimal data transfer speeds. Fiber networks do not normally follow a direct line between any given “A” and “Z” location. It follows geographic contours relating to roads, railroad tracks, or other types of right-of-way where the fiber was placed. For this reason it is important to understand the exact route your circuit follows. You want to eliminate any wasted distance. For dark fiber as well as lit circuits, that is not an option for a typical service provider, as they are quoting their circuits on an existing fiber path that in most cases cannot be varied. However, a network integrator that can utilize optimal spans from multiple providers will be able to piece together the most direct route, incorporating new fiber construction where required.

Reaching the end of the Fiber

In the longhaul environment, there are two main options for extending the transmission of light through the fiber; optical amplifiers and regenerators. Amplifiers and Regenerators are placed along the fiber optic route to ensure that the signal is able to travel the distance while keeping its’ integrity. The main difference between the two is that an amplifier adds light to the existing wavelength to increase the strength of the signal with very little added latency, whereas a regenerator will add a substantial amount of latency. This is required for both lit and dark fiber solutions and needs to be taken into consideration as it is a highly variable component of the end-to-end circuit that affects latency.

Read More: http://www.cfnservices.com/pages/cs_low_latency_dark_versus_lit.html

BATS To Launch Second U.S. Equities Exchange, BYX, by 2010
BATS sees opportunity to experiment with different pricing models and innovative tools. By Ivy Schmerken More from this author September 17, 2009
BATS Global Markets plans to launch a second U.S. equities exchange in early 2010, called BYX, pending regulatory approval, according to the company.

The owner and operator of BATS Exchange is preparing to formally file an application for the second US equities exchange with the Securities and Exchange Commission in the coming weeks, stated the company issued release.

BATS’ second exchange, BYX, will utilize the same proven, advanced technology, location and connectivity as the existing exchange. Pricing for BYX will be announced at a later date, it said.

BATS is also reacting to competitors that are operating multiple equity platforms with different pricing models. According to Randy Williams, BATS’ spokesman, “As competitors in the U.S. have shown, second equities platform offers the opportunity to experiment with pricing models, which differ from a market center’s primary book.

For example, equity markets operator Direct Edge operates two ECN-like platforms, EDGA and EDGX with different pricing models and make-or-take models. NYSE Euronext operates NYSE Arca as well as the NYSE Hybrid Market while Nasdaq OMX operates the Nasdaq Stock Market and Nasdaq OMX BX (formerly Boston Stock Exchange).

In a statement, Joe Ratterman, CEO of BATS Exchange and BATS Global Markets said, “BYX will allow us even greater flexibility in pricing and innovation that will result in more choices for the industry,” stated Ratterman. He noted BATS has been a market leader with “great technology and aggressive pricing since executing its first trade in 2006, Ratterman stated, “The launch of BYX is the logical next step in our efforts to make markets better through the creation of innovative trading tools and services that meet the needs of all market participants,” added Ratterman.

Meanwhile, BATS Exchange and Direct Edge each claim to be either the third largest U.S. equities exchange or equities market, respectively. In less than four years, BATS Exchange has captured 10 percent matched market share in U.S. equities, reported BATS in today’s release. Based on its August monthly volume report, Direct Edge had a record matched share of 12.90%. However, Direct Edge is technically not an exchange yet. Though it operates ISE Stock Exchange, Direct Edge’s main platforms (EDGA and EDGX), that produce the lion’s share of its volume, are not yet approved as exchanges, so technically, Direct Edge ranks third among U.S. equity markets, according to a spokesman.

Globally, mobile video traffic will double every year through 2013, increasing by 66 percent between 2008 and 2013. The wireless data market will grow at a rate of 30 percent year over year. This is taxing the mobile operators who need to support such exponential traffic increases. The key to the wireless vendor success will be their mobile backhaul strategy, leveraging the ability to get affordable fiber to wireless sites. To support this effort CFN Services, the leader in mobile backhaul planning and optimization, introduces FiberSource® Access™; monthly access to the most powerful mobile backhaul optimization knowledge based tool.

What is FiberSource?
FiberSource® is the industry’s best and most comprehensive telecom infrastructure knowledge-base tool. For emerging wireless data and WiMax providers, FiberSource® Access speeds wireless distribution and hub site planning with an optimal mix of wireless and wireline backhaul transport by leveraging high capacity wireless hub sites served with fiber facilities.

FiberSource Attributes:
o Access to 550 Global Carrier Fiber Networks
o 350,000+ miles of fiber routes
o Longhaul and Metro Networks covering 100’s of metropolitan market areas
o Access to 25,000 Data Centers and Lit Buildings
o Fiber Proximity data on more then 200,000 wireless sites
o 80,000 Tower and Rooftop Collocations Sites
o Visibility into existing Fiber served Sites
o Details of the wireless and wireline carriers that serve each site or collocate in the facility
o Central office (CO) location and wire center information across the US covering 20,000+ LEC COs
o Fiber conduit information

What is the Value?
o Shorten design process – locate ideal fiber wireless site in hours not days
o Shortens time to implementation – FiberSource does the heavy lifting and first level research.
o Allows visibility to all available options – providing the ability to make informed decisions that maximize success
o Provides a vehicle to reduce transport costs while growing into new markets or penetrating deeper into existing markets

It is a well-known fact, that faster is better when it comes to many things in the world. In the Electronic Trading industry being first in the queue is not just better, it can mean millions of dollars uplift. When millions are at stake, every aspect of the equation needs to be evaluated. CFN Services is now providing Electronic Traders a new aspect to their low latency goal. In the race to Alpha, there is a new variable in the mix.

In the past Electronic Trading firms have had very little say in the options available for their network choices. They were beholden to a large Carrier or an Electronic Trading Extranet provider and neither was as latency focused that is required by this industry. The Carrier has a network footprint that is not optimized for Electronic Trading, but optimized for the legacy voice services; and a trading platform provider is utilizing that legacy network to maximize their network efficiencies. When you require low latency, a legacy voice backbone network cannot make that happen. CFN Services has turned that model upside down by creating circuits specific for the Electronic Trading space. By utilizing optimal spans from multiple carriers, CFN is able to create specific routes specifically focused on latency. CFN Services is able to provide customized networks for those firms that require a higher-level network optimization to reach their low latency goals. CFN has also developed turnkey networks to the top Global trading exchanges in Chicago, New York, Boston, Toronto, London, Frankfurt, Paris, Tokyo, and Hong Kong.

In addition, Service Level Agreement (SLA) has a new meaning thanks to CFN Services. In the Trading World microseconds can mean missed opportunities for additional profits worth millions of dollars. A SLA should be for the exact latency that is quoted for that circuit, not a microsecond higher. CFN Services is the only provider who offers a SLA specifically for the true Performance Latency on the route provided to the customer. The SLA is not a marked up number, but it is the exact latency on that was quoted in a service order. For example; a contract was signed for 15.9 latency between two locations with CFN Services, they will provide a written Service Level Agreement at that exact latency. To date no customer has had to exercise the SLA outage clause in their agreement with CFN due to a lack of performance of CFN Services.

When does a customer get to sign up for a product with a guarantee that the product will get better with time? Only with CFN Services does that type of relationship exist. The best latency today is not guaranteed to be the best in 6 or 12 months. How many times have you been tied into a long contract with a latency that is no longer a differentiator and now everyone else has caught up? CFN Services has changed expectations of their platform provider by providing a Latency Improvement Plan Guarantee by guaranteeing to evaluate and improve their turnkey and custom fiber networks. CFN has demonstrated success with this plan; dropping the latency by over 9ms for many of it’s existing their exists clients. The clients with CFN now will continue to have opportunities to see their latency from Chicago – New York drop below 15ms in 2010

Offering Latency Service Level Guarantees, providing customized routes that are specific to the electronic trading exchange locations and providing a partnership to continue to work in each firm’s favor by lower latency on a regular basis; CFN Services is the Leader in the Low Latency Networking space; forever changing the expectations of this Market for all players. In order to play in the low latency race it is important to become a client with CFN Services while capacity is still available for their lowest latency routes.

WSTA Resource Guide: CFN Services

CFN Services is a managed infrastructure services company providing network services for the Financial Markets, specializing in network design, planning, deployment, and managed services, for ultra- low latency networking. CFN Services leverages FiberSource®, a global knowledge-based platform that identifies all available dark and lit fiber, collocation, and lit buildings; providing the ability to quickly identify and design optimal ultra-low latency solutions.

Contact Information:
www.cfnservices.com
Judy May
lowlatency@cfnservices.com
703.788.6534
2325 Dulles Corner Blvd 5th Fl
Herndon, VA 20171