Home » Broadband Speed »Competition »Verizon » Currently Reading:

Verizon to Sell Super-Fast Broadband to Wall Street Traders

Phillip Dampier April 17, 2012 Broadband Speed, Competition, Verizon 3 Comments

While your phone company refuses to provide you with better than 3Mbps DSL, Verizon Communications is set to unveil its fastest broadband network yet — targeting Wall Street traders.

Verizon Financial Services is upgrading fiber between New York and Chicago and replacing routers, cutting round trip communications to as little as 14.5 milliseconds — 5 milliseconds faster than Verizon’s current network.

Why the need for speed?

To cut trading time to the bare minimum.  The Wall Street Journal reports that even shaving a few milliseconds off deals can mean the difference of millions of dollars.

As Wall Street and other commodities exchanges become increasingly automated, new opportunities to take advantage of tiny price fluctuations that occur over fractions of seconds can earn traders enormous profits from volume trading.  High frequency trading now represents more than half the volume on the U.S. stock exchanges.

Pricing for the new service was not available at press time.

Share

Currently there are 3 comments on this Article:

  1. Smith6612 says:

    I wish that .5ms of latency mattered to companies to the point where they would make efforts to improve gaming and transfer latency for everyone. The latency on some of the routes I take on my DSL lines are just excessive at times. I pull better relative latency to distant hops over those nearby. Unfortunately for Verizon, my work’s network pulls better latency from New York City to Chicago than what they are proposing on their existing network.

  2. Let markie post decide!

  3. Paul A Houle says:

    HFT is a rat race.

    Traders who make markets need speed because the first person to put an order in at a price that clears get the order.

    If you’re not the fastest, you don’t get orders, you don’t trade and you don’t make money.

    It’s not so much that you make more money by being faster, but that you need to be faster than the other guys. Faster trading is a social good up to a point, but I think most participants don’t care if the order clears in 2 sec or 20 msec.

    The only real drawback of HFT is that it happens faster than humans can react, so you’re trading against Skynet and if goes bezerk it can cause a lot of damage before people find the off switch.







Search This Site:

Contributions:

Recent Comments:

  • Tye T.: Cox doesn't actually throttle their customers. If you should exceed your data cap to an excessive extent then cox will eventually terminate or suspend...
  • Cicuta: I just got the Comcast stupid email letting me know about the modem upgrade and as soon as I read it I said .... screw them! If other people want to u...
  • garage door repair: Wow, wonderful blog layout! How long have you been blogging for? you made blogging look easy. The overall look of your web site is wonderful, as we...
  • acne cures during pregnancy: Very good info. Lucky me I recently found your blog byy chance (stumbleupon). I have book-marked it for later! Check out my website - ...
  • garage door repair: Oh my goodness! Incredible article dude! Thank you so much, However I am going through troubles with your RSS. I don't know why I can't subscribe...
  • garage door repair: Hi there, I believe your website could possibly be having browser compatibility problems. Whenever I take a look at your web site in Safari, it look...
  • garage door repair: My spouse and I stumbled over here different page and thought I might check things out. I like what I see so now i'm following you. Look forward ...
  • garage door opener: Hi just wanted to give you a quick heads up and let you know a few of the pictures aren't loading properly. I'm not sure why but I think its a link...
  • stanley garage door opener: I blog often and I genuinely appreciate your content. Your article has really peaked my interest. I'm going to take a note of your blog and keep chec...
  • garage door opener: You could definitely see your enthusiasm within the work you write. The sector hopes for more passionate writers like you who aren't afraid to say ...
  • electric garage door opener: Thanks in favor of sharing such a nice thought, article is nice, thats why i have read it fully my blog post; ...
  • garage door repair: Hello! I could have sworn I've visited this website before but after browsing through some of the articles I realized it's new to me. Anyways, I'm ...

Your Account: