Latency Measurements

In the fast-paced world of electronic trading, your trading system’s performance makes or breaks deals.

Top performers know that it’s critical to invest in improving performance of a trading system — or risk the system becoming obsolete, leading to lost opportunities and losses.

New Wave DV offers best-in-class latency measurements to keep top performers on top.

Which Factors Do Latency Measurement Solutions Monitor?

Latency is one of the key parameters to measure to determine if an automated algorithmic trading system is performing. This includes:

  • Latency between the incoming information and the trading algorithm
  • Latency between the trading algorithm and the trade execution strategy
  • Latency between the incoming trading opportunity and the actual trade and
  • Latency between the stock exchange and the system input
  • All of these, interpreted, will tell the health of the system, the quality of the network, the performance of the interface card, and the performance of the algorithms.

Precision Time Protocol

In order to undertake latency measurement, precise time information is important, especially for distributed systems. With the Precision Time Protocol (PTP) described in IEEE 1588-2008 (IEC 61588:2009), it is possible to synchronize distributed clocks with an accuracy of less than 1 microsecond via Ethernet networks. In latency measuring applications, PTP is used for correlating physical variables. Events are marked with precise time stamps in real time and transferred to a central station for analysis.

Latency Measurement Diagram

Contact New Wave DV Today for Your Design & Verification Solution

New Wave DV provides best-of-class ultra low latency 10 Gigabit Ethernet FPGA cards enabled with precise time stamp capabilities. Our team’s expertise comes from years of providing solutions for the financial markets. We deliver on time and on budget in an industry where every second and every penny makes or breaks a deal.