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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 the 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. Contact us today for the low latency trading technology you need.

Which Factors Do Latency Measurement Solutions Monitor?

Latency is one of the key parameters that must be measured 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
  • Latency between the stock exchange and the system input

All of these factors, interpreted, will show 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 one microsecond via Ethernet networks.

In latency measuring applications, PTP is used for correlating physical variables. Events are marked with precise timestamps in real time and transferred to a central station for analysis.

Latency Measurement Diagram

Contact New Wave DV Today for Design & Verification Solutions

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

Contact New Wave DV for design and verification solutions for your low latency trading application. Or, view our product offerings to find the technology you need.