Networking Solutions

Low Latency and High Performance for Financial Applications

Industry Solutions

Smarter Networking for Financial Services
In financial markets, market data applications must deliver information at ever-increasing rates and with minimal latency. Market data arriving even a few microseconds late can have huge negative impact on a financial trading firm. Currently, Gigabit Ethernet networks are reaching their limits in bandwidth, maintainability and latency. Multi-core processors, virtualization and converged storage and data networks require an efficient solution for adding bandwidth. Scaling to 10 Gigabit Ethernet is a natural evolution for Gigabit Ethernet networks, and doesn’t require expertise in deploying and maintaining separate network fabrics.

In addition, traditional three-tier data center architectures consisting of server access switches, distribution switches and large core routers take up a lot of space. And they can require data to travel many hops just to communicate with other servers in the same rack or row. Using denser racks and top of rack switches can shrink data center footprint, enable faster communication across fewer hops and minimize overall application latency.

Ultra low latency switching inside a collocated network gives program traders a competitive advantage. In the fast-paced world of High Frequency Trading (HFT), lucrative opportunities such as liquidity imbalances and short-term pricing inefficiencies might exist for only a few microseconds. Success depends on identifying and acting on those opportunities faster than competitors. That responsibility rests on the trading network. Ever since high-performance trading applications were introduced into traditional trading venues, the quest to increase speed has focused on different parts of the network. Today, the speed quest for high frequency trading networks has narrowed into a laser-like focus on latency. Latency measurements that were unachievable just a short time ago are now common. Organizations wishing to take the next step in reducing latency need look no further than their own collocated equipment. There, replacing a traditional router with an ultra-low latency switch can provide a next-generation competitive edge.

With high performance, low latency, low power and low cost top of rack switches from IBM System Networking, clients can build flatter and faster networks for demanding financial services workloads.

IBM RackSwitch Advantages
The IBM RackSwitch line of Ethernet top of rack switches offer low latency along with features ideal for dense data center deployments and managed or unmanaged collocation facilities:

Networking Devices:

*Source: The Tolly Group Report - IBM RackSwitch G8100 & G8124 (PDF, 470KB); The Tolly Group Report - IBM RackSwitch G8264 Resources (PDF, 434KB)

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