Reducing latency is critical for those in the ultra-low latency high frequency trading game; but the number of firms that fit that category isrelatively small. DirectEdge has a new offering that it hopes will appeal to the entire spectrum of latency sensitivity.
“It’s a little bit of a misconception that high-frequency firms will pay anything to save latency,” said Kevin McPartland, senior analyst at TABB Group, a financial markets research firm. “They’re still running businesses and want to save costs.”
“There’s a lot of smaller broker-dealers and hedge funds that until now just kept their servers in a closet in their office,” McPartland said. “They’re realizing that’s not a good long term strategy and need to get those servers in a data center.”