Low-Latency Network Infrastructure features explained
for Trading & Execution
High-speed, optimized network connections designed to minimize transmission delays between trading systems and market venues, which is critical for strategies where microseconds matter.
Every feature we track for Low-Latency Network Infrastructure products, with a description of what each one means.
Connectivity Options
Features related to connecting fund management systems to trading venues, data centers, exchanges, and other relevant networks.
- API Access
- Provides robust APIs (FIX, REST, WebSocket, etc.) for order management and market data.
- Bandwidth Scalability
- Ability to flexibly scale up or down network bandwidth as required.
- Cloud Connectivity
- Supports integration with major cloud service providers (AWS, Azure, GCP, etc) for hybrid trading infrastructure.
- Colocation Availability
- Support for colocation with exchanges or brokers to minimize network round trip times.
- Cross-Connects Capability
- Ability to utilize physical cross-connects within data centers for ultra-low-latency connection.
- Direct Market Access (DMA)
- Enables direct connection to exchanges or liquidity providers for low-latency order routing.
- Last Mile Solutions
- Options for high-performance last-mile connectivity (fiber, wireless, etc).
- Multi-venue Connectivity
- Supports simultaneous connections to multiple trading venues or exchanges.
- Redundant Connections
- Supports multiple redundant network links to reduce risk of downtime.
- Remote Access Support
- Enables secure remote access for trading and monitoring when not colocated.
Cost & Commercials
Key attributes around pricing, contracting, and return on investment evaluation.
- Clear SLA Penalty Clauses
- Documented credits or penalties when SLA is not met.
- Cost Predictability
- Absence of variable, unpredictable costs.
- Free Evaluation/Trial
- Option to test system performance before full commitment.
- Inclusive Support/Upgrades
- Basic support, maintenance, and updates included in license cost.
- No Lock-in Period
- Ability to exit or downgrade contracts with minimal penalty.
- Pay-as-you-go Option
- Consumption-based billing, avoiding high upfront commitment.
- Tiered Subscription Plans
- Different service levels/capacities at ascending price points.
- Transparent Pricing Model
- Full clarity into cost structure for infrastructure and add-ons.
- Usage Analytics for Cost Optimization
- Reporting tools to help optimize usage and minimize spend.
- Volume Discounts
- Reduced per-unit cost at higher usage or term commitments.
Data Distribution & Market Data Handling
Features for ingesting, distributing, and acting upon market data with high velocity.
- Data Throttling
- Configurable maximum data delivery rates to client apps.
- Dynamic Subscription Management
- Allows real-time control over subscribed symbols/markets.
- Feed Gap Detection
- Automatically detects missing or out-of-sequence data packets.
- Feed Latency
- Latency from market data generation to receipt by trading engine.
- Historical Data Replay
- Ability to replay market data for backtesting or simulation.
- Low-latency Market Data Feed Handler
- Specialized systems for ingesting and parsing raw exchange market data.
- Market Data Recovery
- Automated recovery in case of feed disconnection or corruption.
- Multicast/Broadcast Support
- Efficient data delivery to multiple recipients simultaneously.
- Normalized Data Feeds
- Ability to consume and output market data in standardized formats.
- Snapshot and Incremental Updates
- Handles both full-depth market snapshots and ticks/updates.
Integration & Interoperability
Ability of the network infrastructure to integrate, interface, and function with fund management operations and legacy systems.
- Back-office System Connectivity
- Ability to interface with reconciliation, risk, and compliance systems.
- Cross-platform Compatibility
- Works with multiple operating systems and hardware platforms.
- Customizable Interfaces
- Ability to tailor integrations based on unique workflow requirements.
- Data Format Flexibility
- Support for various trading data formats (JSON, XML, binary).
- FIX Protocol Support
- Native support for Financial Information eXchange (FIX) protocol.
- Legacy System Support
- Integration pathways for older infrastructure or proprietary systems.
- Open API Availability
- Public documentation and SDKs for easy integration.
- Plug-and-Play Integration
- Minimal setup required to connect with OMS/EMS and fund management software.
- Standard Middleware Support
- Compatibility with leading middleware solutions for messaging and event handling.
- Third-party Vendor Certification
- Certified interoperability with popular trading software vendors.
Latency & Performance
Critical attributes and measurements of network speed, reliability, and determinism for trading and execution.
- Guaranteed Service Level Agreement (SLA)
- Provider guarantees around latency, uptime, and support.
- Latency Jitter
- Variability in latency over time.
- Latency Monitoring Tools
- Integrated tools for real-time latency measurement and reporting.
- Low-latency Switching / Routing
- Specialized network hardware for sub-microsecond switching/routing.
- Network Time Synchronization
- High-precision clock synchronization (e.g., GPS, PTP) across all components.
- Packet Loss Rate
- Percentage of data packets lost during transmission.
- Prioritization / QoS
- Supports network Quality of Service (QoS) and message prioritization.
- Round-trip Latency
- Time taken to send an order/message and receive a response from the trading venue.
- Single-hop Communication
- Minimal network hops between trading engine and market venue.
- Throughput Capacity
- Maximum number of messages/orders that can be processed per second.
Order Management & Handling
Network-centric features that accelerate and secure the life-cycle of electronic orders and executions.
- Anomalous Activity Detection
- Flagging of suspicious or erroneous order flow.
- Bulk Order Handling
- Efficient support for block or program trading.
- In-flight Order Modification
- Ability to modify or cancel orders before execution completes.
- Low-latency Order Routing
- Specialized mechanisms for routing orders in the shortest possible time.
- Order Acknowledgment Time
- Time taken from order send to acknowledgment.
- Order Persistence
- Ensures orders are not lost due to network or system failure.
- Order Sequencing
- Preserves strict order of message delivery to prevent race conditions.
- Order Throttling
- Enforces configurable limits on order submission rates.
- Order Timeout/Expiry Handling
- Automated expiry or cancellation of unfilled orders.
- Trade Drop Copy Support
- Provides real-time drop copy of executions to back-office and risk systems.
Reliability & Resilience
Features ensuring consistent system operation, fault tolerance, and rapid recovery in case of issues.
- Automated Incident Response
- Capability to automatically respond to faults and reroute traffic.
- Downtime Notification
- Immediate alerting on network issues or outages.
- Failover Support
- Automatic switch to backup systems or connections upon primary failure.
- Geographical Redundancy
- Distributed infrastructure across multiple locations for disaster recovery.
- Historical Uptime Records
- Availability of historical records for downtime events.
- Hot/Cold Standby Systems
- Availability of standby systems that can take over during outages.
- Network Monitoring
- Continuous surveillance and health-checks of network infrastructure.
- Proactive Maintenance Support
- Systems in place for regular preventative maintenance.
- Self-healing Network Capabilities
- Infrastructure can diagnose and rectify certain failures autonomously.
- Service Uptime
- Percentage of time the network infrastructure is available.
Scalability
The system's ability to efficiently support growth in trading volume, venues, or users without loss of performance.
- API Call Rate Limit
- Maximum rate of programmatic API calls handled reliably.
- Automated Scaling Tools
- Systems can auto-provision or decommission based on demand.
- Elastic Resource Allocation
- Dynamically adds capacity for bandwidth, processing, or storage as needed.
- Geographic Expansion Capability
- Easily extend coverage to new markets or regions.
- Linear Performance Scaling
- Performance increases proportionally with added resources.
- Multi-tenancy Support
- Accommodates multiple users, clients, or funds simultaneously.
- Order Rate Limit
- Maximum supported burst rate for order entry.
- Session Scalability
- Ability to handle increasing numbers of trading or data sessions.
- User Limit
- Maximum supported concurrent authenticated users.
- Venue Limit
- Maximum number of trading venues/exchanges supported.
Security
All aspects of network defense, compliance, and secure operations to protect against internal and external threats.
- Access Control
- Granular user access management and authentication.
- Compliance Certification
- Adherence to relevant regulatory security and privacy standards (e.g. ISO 27001, SOC2).
- DDoS Protection
- Built-in network defense against distributed denial-of-service attacks.
- Encryption
- End-to-end encryption for data-in-transit.
- Firewalling
- Robust firewall solutions to block unauthorized access.
- Intrusion Detection and Prevention Systems (IDPS)
- Active monitoring for unusual or unauthorized activity.
- Network Segmentation
- Separation of critical trading infrastructure from general-purpose networks.
- Physical Security
- Physical controls and surveillance at data centers and network hubs.
- Real-Time Security Alerts
- Instant detection and notification of security incidents.
- Security Audits & Penetration Testing
- Regular third-party audits of infrastructure security.
Vendor Support & Service
Services and assistance provided by the network solution vendor for fund managers and their technology teams.
- 24/7 Technical Support
- Round-the-clock access to vendor technical assistance.
- Custom Implementation Services
- Vendor-led services for bespoke integration/deployment.
- Customer Training Programs
- Structured onboarding and ongoing user education.
- Dedicated Account Manager
- Assigned representative for personalized support and escalation.
- Incident Escalation Procedure
- Well-defined escalation paths for urgent issues.
- Knowledge Base/Documentation
- Comprehensive and regularly-updated online help resources.
- Onsite Support Availability
- Option for physical presence of support staff during incidents or upgrades.
- Regular Product Updates
- Scheduled releases of new features and bug fixes.
- Root Cause Analysis
- Provision of root cause analysis on incidents upon request.
- SLA Enforcement
- Processes for tracking and enforcing service level agreements.
Visibility, Analytics & Monitoring
Tools and features for real-time and historical visibility into network/trading system performance.
- API for Metrics Extraction
- Ability to extract raw or processed data via API.
- Audit Logging
- Complete logging of system and user activity for compliance.
- Custom Alerting
- Configurable thresholds for automatic notifications of anomalies.
- End-to-End Tracing
- Trace orders/messages across their complete lifecycle for troubleshooting.
- Exportable Reports
- Generate and export custom reports for management or regulatory review.
- Historical Data Access
- Access to retained latency, throughput, and system log data.
- Latency Heatmaps
- Graphical representations showing latency across venues/routes.
- Order Flow Analytics
- Visualization of trading activity for performance analysis.
- Real-time Network Analytics
- Dashboards and reports for live network performance metrics.
- Third-party Monitoring Integration
- Ability to integrate with popular monitoring tools (Splunk, Prometheus, etc).