The Impact of High-Speed Networks on HFT Performance

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Year : April 5, 2024 at 12:06 pm | [if 1553 equals=””] Volume :14 [else] Volume :14[/if 1553] | [if 424 equals=”Regular Issue”]Issue[/if 424][if 424 equals=”Special Issue”]Special Issue[/if 424] [if 424 equals=”Conference”][/if 424] : 01 | Page : –

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    Yamini Kannan, Dharika Kapil

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  1. Network Engineer, Software Developer, Department of Computer Science, New York University, Department of Computer Science, MarketAxess, New York, Hudson Yards, USA, United States
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Abstract

nThis paper provides an in-depth examination of the critical role that high-speed networks play in the operations of high-frequency trading (HFT) firms. High-speed networks, characterized by their low latency and high bandwidth, facilitate the rapid, efficient transmission of massive quantities of data, a capability that is vital to the success of HFT strategies. We explore the core infrastructure that enables high-speed trading, from high-performance servers and switches to network interface cards and time synchronization devices. Additionally, we delve into the specifics of low-latency switches and multicast networks, discussing their advantages, challenges, and their application in an HFT context. An overview of emerging technologies and trends such as artificial intelligence, machine learning, 5G networks, quantum computing, and regulatory changes that could potentially shape the future of high-frequency trading networks is also presented. This paper serves as a comprehensive reference point for understanding and evaluating the impact and future scope of high-speed networks in high-frequency trading.

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Keywords: High-Frequency Trading, Algorithmic Trading, Low-Latency Networks, High-Performance Servers, Multicast, Network Interface Cards, Artificial Intelligence in Trading, Edge Computing, 5G Networks

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How to cite this article: Yamini Kannan, Dharika Kapil The Impact of High-Speed Networks on HFT Performance joces April 5, 2024; 14:-

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How to cite this URL: Yamini Kannan, Dharika Kapil The Impact of High-Speed Networks on HFT Performance joces April 5, 2024 {cited April 5, 2024};14:-. Available from: https://journals.stmjournals.com/joces/article=April 5, 2024/view=0

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References

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[if 424 not_equal=””]Regular Issue[else]Published[/if 424] Subscription Review Article

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Journal of Communication Engineering & Systems

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[if 344 not_equal=””]ISSN: 2249-8613[/if 344]

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Volume 14
[if 424 equals=”Regular Issue”]Issue[/if 424][if 424 equals=”Special Issue”]Special Issue[/if 424] [if 424 equals=”Conference”][/if 424] 01
Received February 8, 2024
Accepted March 4, 2024
Published April 5, 2024

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