KVH to Launch First Service Model of High Precision Latency Measurement for Trading Systems in Asia
Based on a partnership between KVH and Terilogy Co., Ltd., an exclusive partner of TS-Associates in the region, the new KVH service incorporates TS-Associates’ Precision Instrumentation solutions and will be initially available in key financial cities including Tokyo, Osaka, Hong Kong, Singapore, and Sydney.
The High Frequency Trading (HFT) environment in Asia is evolving rapidly, with the major financial exchanges currently introducing next-generation trading platforms and revising their trading schemes. Consequently, demand for low latency connectivity and faster processing throughput is continually increasing in trading markets. This new service supports traders by quickly finding and analyzing bottlenecks in their trading systems that are generating latency and affect competitive advantage, even at the nanosecond level, to solve problems in their early stages.
KVH new service, which leverages TS-Associates’ TipOff, a network monitoring appliance, and Application Tap, a software instrumentation card, will be installed in the trading systems of KVH’s data center or network services users. With extensive monitoring across everything from networks and middleware to application layers, the service enables high precision and various kinds of measurements including round trip latency per order from the customer’s site to an exchange matching engine and real-time nanosecond-level latency between network and server processing in the customer’s trading system.
Users can choose from either the Standard Service or the Premium Service, both of which are charged at a fixed monthly fee. The Standard Service includes round trip latency measurement, network analysis, and on-line reports, while the Premium Service offers server process latency measurement, system optimization consulting, and customized reports.
Combining high-speed optical fiber networks with data centers located close to major exchanges, KVH proximity services provide a complete hosting environment well-suited for ultra low latency trading transactions with multiple exchanges in the region. With the addition of this new service, KVH proximity services broadens the capabilities of market participants to outsource the full operations of their trading infrastructure, including the procurement of networks and servers, implementation, system management, and optimization, allowing them to concentrate resources and efforts on their core business of implementing trading strategies. As a market leader in proximity services, KVH will continue to expand its solutions to address market needs.