Fujitsu and Solarflare share the observation that the rapid expansion of automated and algorithmic trading has increased the critical role of network and server technology in market trading, first in the requirement for low latency and second in the need for high throughput in order to process the high volume of transactions. Given the critical demand for information technology, private and public companies that are active in electronic markets continue to invest in their LAN and WAN networks and in the server infrastructure that carries market data and trading information.
Intel has signed a definitive agreement to acquire switch silicon maker Fulcrum Microsystems. The deal adds Ethernet switch chips to Intel’s growing portfolio of networking products. The agreement, whose terms remain under wraps, was announced on Tuesday.
The bar for what qualifies as a fast connection or “low latency” networking has always been higher in finance than in other areas of corporate networking. It’s never been quite this high, however.
The battle for the lowest possible latency has been raging in the financial services sector for years but is not the most critical factor for every segment of the industry. While low latency will be enhanced in cloud developments, for now it appears that only this small non-latency-obsessed market can be reached by cloud vendors.
A focus on low latency is giving a new breed of Ethernet switch vendors a leg up on their competition.
Technologies that enable lower latency have been used to speed the trading process, but these same technologies can also be used for risk management.
Do more with less and do it faster. That’s a pretty familiar order to anybody running an IT operation these days. At the High Performance on Wall Street conference, hundreds of financial services IT practitioners came looking to find ways to meet the demands of business that moves at the speed of microseconds.
A common critique of external cloud computing services is that big-time IT users, like major corporations and financial institutions, are nowhere near getting on board. That might be true for the new breed of “cloud” services, but for the financial services sector, at least, outsourcing is far from a dirty word.