We noted recently that the race to lowest possible latency has witnessed the rise of a new class of competitors: Wireless communication equipment makers, who say they are ready to prove that wireless trading speeds are now the equal (at least) of land-based systems.

These companies are pushing solutions that use microwave and millimeter-wave based wireless technology, which they say are even faster than fiber optics for transmitting messages. As if on cue, McKay Brothers--which ranks among the most noteworthy upstarts and also include Escape Communications and Renaissance Electronics--has announced that it “is building a low-latency network between financial centers in Chicago and New York that will be faster than the 13.3 millisecond roundtrip using fiber that was created last year by Spread Networks,” according to Securities Technology Monitor.

The Oakland, Calif. Company has already begun “building its microwave-based, low-latency wireless network between Chicago and New Jersey, designed for high-performance trading.”  It expects to be operational this summer.

There would appear to be some real efficiencies to be gained by going wireless. As the article notes, “Spread Networks, based in Ridgeland, Miss., bore through mountains with rock saws to literally cut 100 miles out of the communications distance between Chicago and New York.”

The company is co-locating their microwave dishes on existing towers. McKay Brothers is headed by Bob Meade, who ran a high-frequency trading group at Ronin Capital. He holds a PhD. in Theoretical Physics from Harvard. Other executives include former co-head of listed and structured equity options at J.P. Morgan, Jim Considine. Some of the technology was formulated for the military initially.

Does this looms as a game changer for the trading industry, provided the price points are suitably low?

For more:
- here’s the article

Related article:
Low latency, wireless style