Friday, September 4, 2009

Milliseconds are focus in algorithmic trades

from Reuters, the data center mentioned is probably SAVVIS:

>>NEW YORK (Reuters) - Algorithmic trading, in which computers execute orders at lightning speeds, has financial exchanges relocating computer systems to shave milliseconds off execution times, executives said this week at the Reuters Exchanges and Trading Summit.


The focus on milliseconds is so intense that trading platforms like the Philadelphia exchange and Kansas City-based BATS have moved their servers closer to broker-dealer hubs in the New York City region.

Cummings said BATS' matching engines are in Weehawken, New Jersey, across the Hudson river from Manhattan, adding that the same building hosted servers from NYSE Arca, an electronic exchange. "We chose that building strategically. A lot of our customers already had their servers in that building."

When Frucher began revamping the Philadelphia exchange's equity trading platform about 18 months ago, he realized that a three-millisecond delay between Philadelphia and the New York City region -- about 100 miles away -- was noncompetitive

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