Features in Low-Latency Network Infrastructure
for Trading & Execution
High-speed, optimized network connections designed to minimize transmission delays between trading systems and market venues, which is critical for strategies where microseconds matter.
We ask vendors to mark their product against our feature list. It is not available for all products and in some cases we have derived data from publicly available sources. The list of features follows. Vendors can add a further 10 key features of their own.
Connectivity Options
Features related to connecting fund management systems to trading venues, data centers, exchanges, and other relevant networks.
- API Access
- Provides robust APIs (FIX, REST, WebSocket, etc.) for order management and market data.
- Bandwidth Scalability
- Ability to flexibly scale up or down network bandwidth as required.
- Cloud Connectivity
- Supports integration with major cloud service providers (AWS, Azure, GCP, etc) for hybrid trading infrastructure.
- Colocation Availability
- Support for colocation with exchanges or brokers to minimize network round trip times.
- Cross-Connects Capability
- Ability to utilize physical cross-connects within data centers for ultra-low-latency connection.
- Direct Market Access (DMA)
- Enables direct connection to exchanges or liquidity providers for low-latency order routing.
- Last Mile Solutions
- Options for high-performance last-mile connectivity (fiber, wireless, etc).
- Multi-venue Connectivity
- Supports simultaneous connections to multiple trading venues or exchanges.
- Redundant Connections
- Supports multiple redundant network links to reduce risk of downtime.
- Remote Access Support
- Enables secure remote access for trading and monitoring when not colocated.
Cost & Commercials
Key attributes around pricing, contracting, and return on investment evaluation.
- Clear SLA Penalty Clauses
- Documented credits or penalties when SLA is not met.
- Cost Predictability
- Absence of variable, unpredictable costs.
- Free Evaluation/Trial
- Option to test system performance before full commitment.
- Inclusive Support/Upgrades
- Basic support, maintenance, and updates included in license cost.
- No Lock-in Period
- Ability to exit or downgrade contracts with minimal penalty.
- Pay-as-you-go Option
- Consumption-based billing, avoiding high upfront commitment.
- Tiered Subscription Plans
- Different service levels/capacities at ascending price points.
- Transparent Pricing Model
- Full clarity into cost structure for infrastructure and add-ons.
- Usage Analytics for Cost Optimization
- Reporting tools to help optimize usage and minimize spend.
- Volume Discounts
- Reduced per-unit cost at higher usage or term commitments.
Data Distribution & Market Data Handling
Features for ingesting, distributing, and acting upon market data with high velocity.
- Data Throttling
- Configurable maximum data delivery rates to client apps.
- Dynamic Subscription Management
- Allows real-time control over subscribed symbols/markets.
- Feed Gap Detection
- Automatically detects missing or out-of-sequence data packets.
- Feed Latency
- Latency from market data generation to receipt by trading engine.
- Historical Data Replay
- Ability to replay market data for backtesting or simulation.
- Low-latency Market Data Feed Handler
- Specialized systems for ingesting and parsing raw exchange market data.
- Market Data Recovery
- Automated recovery in case of feed disconnection or corruption.
- Multicast/Broadcast Support
- Efficient data delivery to multiple recipients simultaneously.
- Normalized Data Feeds
- Ability to consume and output market data in standardized formats.
- Snapshot and Incremental Updates
- Handles both full-depth market snapshots and ticks/updates.
Integration & Interoperability
Ability of the network infrastructure to integrate, interface, and function with fund management operations and legacy systems.
- Back-office System Connectivity
- Ability to interface with reconciliation, risk, and compliance systems.
- Cross-platform Compatibility
- Works with multiple operating systems and hardware platforms.
- Customizable Interfaces
- Ability to tailor integrations based on unique workflow requirements.
- Data Format Flexibility
- Support for various trading data formats (JSON, XML, binary).
- FIX Protocol Support
- Native support for Financial Information eXchange (FIX) protocol.
- Legacy System Support
- Integration pathways for older infrastructure or proprietary systems.
- Open API Availability
- Public documentation and SDKs for easy integration.
- Plug-and-Play Integration
- Minimal setup required to connect with OMS/EMS and fund management software.
- Standard Middleware Support
- Compatibility with leading middleware solutions for messaging and event handling.
- Third-party Vendor Certification
- Certified interoperability with popular trading software vendors.
Latency & Performance
Critical attributes and measurements of network speed, reliability, and determinism for trading and execution.
- Guaranteed Service Level Agreement (SLA)
- Provider guarantees around latency, uptime, and support.
- Latency Jitter
- Variability in latency over time.
- Latency Monitoring Tools
- Integrated tools for real-time latency measurement and reporting.
- Low-latency Switching / Routing
- Specialized network hardware for sub-microsecond switching/routing.
- Network Time Synchronization
- High-precision clock synchronization (e.g., GPS, PTP) across all components.
- Packet Loss Rate
- Percentage of data packets lost during transmission.
- Prioritization / QoS
- Supports network Quality of Service (QoS) and message prioritization.
- Round-trip Latency
- Time taken to send an order/message and receive a response from the trading venue.
- Single-hop Communication
- Minimal network hops between trading engine and market venue.
- Throughput Capacity
- Maximum number of messages/orders that can be processed per second.
Order Management & Handling
Network-centric features that accelerate and secure the life-cycle of electronic orders and executions.
- Anomalous Activity Detection
- Flagging of suspicious or erroneous order flow.
- Bulk Order Handling
- Efficient support for block or program trading.
- In-flight Order Modification
- Ability to modify or cancel orders before execution completes.
- Low-latency Order Routing
- Specialized mechanisms for routing orders in the shortest possible time.
- Order Acknowledgment Time
- Time taken from order send to acknowledgment.
- Order Persistence
- Ensures orders are not lost due to network or system failure.
- Order Sequencing
- Preserves strict order of message delivery to prevent race conditions.
- Order Throttling
- Enforces configurable limits on order submission rates.
- Order Timeout/Expiry Handling
- Automated expiry or cancellation of unfilled orders.
- Trade Drop Copy Support
- Provides real-time drop copy of executions to back-office and risk systems.
Reliability & Resilience
Features ensuring consistent system operation, fault tolerance, and rapid recovery in case of issues.
- Automated Incident Response
- Capability to automatically respond to faults and reroute traffic.
- Downtime Notification
- Immediate alerting on network issues or outages.
- Failover Support
- Automatic switch to backup systems or connections upon primary failure.
- Geographical Redundancy
- Distributed infrastructure across multiple locations for disaster recovery.
- Historical Uptime Records
- Availability of historical records for downtime events.
- Hot/Cold Standby Systems
- Availability of standby systems that can take over during outages.
- Network Monitoring
- Continuous surveillance and health-checks of network infrastructure.
- Proactive Maintenance Support
- Systems in place for regular preventative maintenance.
- Self-healing Network Capabilities
- Infrastructure can diagnose and rectify certain failures autonomously.
- Service Uptime
- Percentage of time the network infrastructure is available.
Scalability
The system's ability to efficiently support growth in trading volume, venues, or users without loss of performance.
- API Call Rate Limit
- Maximum rate of programmatic API calls handled reliably.
- Automated Scaling Tools
- Systems can auto-provision or decommission based on demand.
- Elastic Resource Allocation
- Dynamically adds capacity for bandwidth, processing, or storage as needed.
- Geographic Expansion Capability
- Easily extend coverage to new markets or regions.
- Linear Performance Scaling
- Performance increases proportionally with added resources.
- Multi-tenancy Support
- Accommodates multiple users, clients, or funds simultaneously.
- Order Rate Limit
- Maximum supported burst rate for order entry.
- Session Scalability
- Ability to handle increasing numbers of trading or data sessions.
- User Limit
- Maximum supported concurrent authenticated users.
- Venue Limit
- Maximum number of trading venues/exchanges supported.
Security
All aspects of network defense, compliance, and secure operations to protect against internal and external threats.
- Access Control
- Granular user access management and authentication.
- Compliance Certification
- Adherence to relevant regulatory security and privacy standards (e.g. ISO 27001, SOC2).
- DDoS Protection
- Built-in network defense against distributed denial-of-service attacks.
- Encryption
- End-to-end encryption for data-in-transit.
- Firewalling
- Robust firewall solutions to block unauthorized access.
- Intrusion Detection and Prevention Systems (IDPS)
- Active monitoring for unusual or unauthorized activity.
- Network Segmentation
- Separation of critical trading infrastructure from general-purpose networks.
- Physical Security
- Physical controls and surveillance at data centers and network hubs.
- Real-Time Security Alerts
- Instant detection and notification of security incidents.
- Security Audits & Penetration Testing
- Regular third-party audits of infrastructure security.
Vendor Support & Service
Services and assistance provided by the network solution vendor for fund managers and their technology teams.
- 24/7 Technical Support
- Round-the-clock access to vendor technical assistance.
- Custom Implementation Services
- Vendor-led services for bespoke integration/deployment.
- Customer Training Programs
- Structured onboarding and ongoing user education.
- Dedicated Account Manager
- Assigned representative for personalized support and escalation.
- Incident Escalation Procedure
- Well-defined escalation paths for urgent issues.
- Knowledge Base/Documentation
- Comprehensive and regularly-updated online help resources.
- Onsite Support Availability
- Option for physical presence of support staff during incidents or upgrades.
- Regular Product Updates
- Scheduled releases of new features and bug fixes.
- Root Cause Analysis
- Provision of root cause analysis on incidents upon request.
- SLA Enforcement
- Processes for tracking and enforcing service level agreements.
Visibility, Analytics & Monitoring
Tools and features for real-time and historical visibility into network/trading system performance.
- API for Metrics Extraction
- Ability to extract raw or processed data via API.
- Audit Logging
- Complete logging of system and user activity for compliance.
- Custom Alerting
- Configurable thresholds for automatic notifications of anomalies.
- End-to-End Tracing
- Trace orders/messages across their complete lifecycle for troubleshooting.
- Exportable Reports
- Generate and export custom reports for management or regulatory review.
- Historical Data Access
- Access to retained latency, throughput, and system log data.
- Latency Heatmaps
- Graphical representations showing latency across venues/routes.
- Order Flow Analytics
- Visualization of trading activity for performance analysis.
- Real-time Network Analytics
- Dashboards and reports for live network performance metrics.
- Third-party Monitoring Integration
- Ability to integrate with popular monitoring tools (Splunk, Prometheus, etc).