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In the high-speed world of automated financial trading, milliseconds matter. So much so, in fact, that a saving of just six milliseconds in transmission time is all that is required to justify the laying of the first transatlantic communications cable for 10 years at a cost of more than $300m.
Seabed survey work for the Hibernian Express, as the 6,021km (3,741 mile) fibre-optic link will be known, is already under way off the east coast of America.
Hibernia Atlantic, the company behind it, is planning to sell a special superfast bandwidth that will have hyper-competitive trading firms and banks in the City of London and New York queuing to use it. In fact it is predicted they will pay about 50 times as much to link up via the Hibernian Express than they do via existing transatlantic cables.
The current leader, Global Crossing's AC-1 cable, offers transatlantic connection in 65 milliseconds. The Hibernian Express will shave six milliseconds off that time.
Originally posted by Maxmars
Speed is the key.., and 6 milliseconds can be the difference between profiting millions - or not at all.
Originally posted by Desolate Cancer
100% related video, and one of the absolute best Ted talks in recent years.
The cable itself is a good business and if the demand is there, then it is a worthwhile venture. As for the traders they say these people provide liquidity to the markets and make the market seem bigger, I dont know about their worth as investors or to the markets, but at least they are driving advancement of technology to serve their needs, Which is good.
"The speed-of-light limitation is getting annoying," Andrew Bach, head of network services at NYSE Euronext, told the European Conference on Optical Communications in Geneva, Switzerland, last week.
With global markets currently in turmoil, it might seem a strange time to worry about the speed of trades, particularly when automated trading was implicated in the stock market's May 2010 "flash crash". But traders still want their computers to receive trading data and place orders instantaneously. And customers will go elsewhere if a rival is faster.