New low latency record for trades?


Wireless service providers may be inching ahead of the fiber optic providers in the race to the lowest possible latency on transmissions between Chicago and New Jersey.

The McKay Brothers recently announced that it had lowered its round-trip speed between Aurora, IL and Secaucus, NJ to 8.27 milliseconds, For the the round trip between Aurora and Newark, its new time is 8.23 milliseconds. Not too long ago, getting under 10 milliseconds was considered a significant milestone.

"I'm confident we had the lowest latency network before this upgrade," said Bob Meade, co-founder of McKay Brothers in a statement, "but this significantly raises the bar for the competition."  

There would appear to be some real efficiencies to be gained via the wireless approach. Recall that Spread Networks once bored through mountains with rock saws to literally cut 100 miles out of the communications distance between Chicago and New York. The company announced in October that it lowered it round-trip speed to 12.98 milliseconds, compared with 13.1 milliseconds previously. 

There are plenty of other competitors that are active in the race. Escape Communications, Thesys Technologies, Nexxcom Wireless and Renaissance Electronics are active on the wireless size, while Verizon remain in hunt on the fiber optic side.

The lowest latency isn't the only thing that hedge funds and trading outfits are looking for. Reliability and value-added services remain issues as well.

For more:
- here's the McKay Brothers release

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