It was great to get back to the office following your Holiday break, you can forget cool turkey! Setting out strategies for the approaching year is a great opportunity to seem at what typically the commentators are stating will be the particular trends of the New Year. The buzz in typically the Higher frequency Trading room is about the approaching regulation and European Union MiFID a couple of (Market in Economic Instruments Directive) inside particular. I normally perceive regulation while a bad factor, more work using no gain, nevertheless we might not have got the market fragmentation in Europe without having MiFID; which shattered the monopoly involving country stock deals. 45% of the FTSE 100 stocks and options are traded off of the London Inventory Exchange. The Tabb Group, a consultancy, reckons HFT accounts for 56% of most equities trades in the US and 38% in The european countries. The trend can only go a single way with even more market players getting into the HFT style of investing.
Two technology styles to watch this one fourth
Growth inside of the market is excellent news for us within the technology space but we are also seeing innovations in the Low Latency Networking place that will impact the infrastructure styles we are delivering. The first will be Precision Time Process (IEEE 1588, PTP) in silicon on network cards and the second is usually purchase of Voltaire, susceptible to approvals.
What PTP means with regard to the Low Dormancy market.
Accurate way of measuring of latency arbitrage. Traders will understand to micro-second just how long their place changes are taking and will be able to see arbitrage opportunities. The duds will have to get smarter which in turn is great for marketplace efficiency.
Consultants which have built a small business on deploying predicted trade times simply by inserting probes plus parallel processing runs will have to amend their method because the network side will end up being producing accurate results, finally!
The suppliers of network kernel by-pass acceleration will certainly be able to quickly and merely demonstrate the key benefits of their particular technology, making it simpler to be able to sell the strategy. Who is able to argue along with figures that dependable that so the drop from 20ms to 9ms.
Typically the other news with the end of last year was the purchase of Voltaire, the Infiniband system vendor, by si manufacturer Mellanox, the particular only other key player in the Infiniband tech space. This consolidation of the markets will focus the particular attention on typically the furious Infiniband verses 10 Gigbait Ethernet, (10GbitE) debate. Seeing the vendors putting stones at 1 another is going to be entertaining but the High end Computing market is usually just right to assistance both technologies plus I think the High Frequency Stock trading market will do the particular same.

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