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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (31683)	11/1/2009 5:36:31 PM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 46821

The Cost of Latency: An economic analysis James Hamilton \| Perspectives \| 10.31.09 Looking first at the economic argument for faster web sites ... [...] Google appears to be one of the early high-traffic sites to focus on low latency as a feature but, until recently, the big players haven’t talked much about the impact of latency. perspectives.mvdirona.com ------

To: Frank A. Coluccio who wrote (31683)	11/2/2009 11:21:14 AM
From: Frank A. Coluccio	Respond to of 46821

[Latency] Another instance of 'latency-awareness', this time leveraged by vendor XKL boasting the speed of its 'in-line' optical amplifier. XKL's New DarkStar™ In-Line Fiber Amplifiers Move Data At The Speed Of Light FiberOpticsOnline \| October 30, 2009 Compact, Energy-efficient 1U Devices Deliver Excellent Latency for Businesses with Time-Sensitive Data Needs bit.ly ------

To: Frank A. Coluccio who wrote (31683)	12/8/2009 4:28:39 PM
From: Frank A. Coluccio	Respond to of 46821

Latency Arbitrage: The Real Power Behind Predatory High Frequency Trading A Themis Trading LLC White Paper By Sal Arnuk and Joseph Saluzzi \| December 4, 2009 Introduction In previous white papers, we have discussed several High Frequency Trading (HFT) strategies and tactics, such as Liquidity Rebate Trading, and more predatory styles, such as Flash, Dark Pool Pinging, and Predatory Algorithms (or algos). It is the predatory styles that first alerted us to HFT because of its detrimental impact on traditional institutional and retail investors. In this paper we address the practice of Latency Arbitrage. We believe Latency Arbitrage is more than a simple case of technological evolution, but raises serious questions about the fairness and equal access of US equity markets which have made them the envy of the world. Cont.: docs.docstoc.com hat tip: flopwedge ------

To: Frank A. Coluccio who wrote (31683)	4/22/2010 12:15:50 PM
From: Frank A. Coluccio	Respond to of 46821

Slicing bits for the trading pits, the low-latency war wages on -- Infinera unveils low-latency strategy By Stephen Hardy \| Lightwave \| April 22, 2010 Infinera this morning became the latest company to offer a strategy to lower latency in communications networks. The systems house introduced what it calls a “tool kit” of features -- some new, some not -- for its platforms to address the growing interest in low-latency networking. Cont.: lightwaveonline.com -- FAC: From what I can see, what Infinera is effectively doing is creating a bypass around its hallmark electrical circuitry, where the latter is typically used for grooming and aggregation purposes, in order to provide a 'clear path' for a limited number of "native" flows that require low latency. An odd way of provisioning QoS, but a sensible approach in overcoming latency that is otherwise inherent to its design. On a more general note, the following are possibly interest to some: #msg-26004917 :Paper: Understanding Latency in Network Systems: Sources of Latency and Jitter in Network Architectures 10/8/2009 #msg-26010785 : Roundtable Debate: Do you consider that an industry standard for latency would be useful? 10/11/2009 ------

To: Frank A. Coluccio who wrote (31683)	4/22/2010 1:59:31 PM
From: Frank A. Coluccio	Respond to of 46821

[Latency] Why distance matters By Joan Engebretson \| Connected Planet \| Apr 21, 2010 Challengers dominate the low-latency market - but for how long? In the last decade or so, we've all tended to become complacent about the ability of e-mails from across the globe to reach us virtually instantaneously while conversing via cell phone with a colleague 12 time zones away. With data traveling at near light speeds via fiber optic links, distance increasingly has begun not to matter - or so we thought. Near-instantaneous high-bandwidth connections have given rise to a new form of financial trading based on algorithms. These algorithmic trading systems seek to generate profits by quickly acting upon extremely small changes in the price of a security. In this environment, a few extra milliseconds of transmission time can mean the difference between a profitable trade and one that's not worth doing because the price changed while the buy order was on its way. Network operators supporting these automated high-speed trades have learned that in this particular environment, distance does matter. From a global perspective, New York and Chicago are not so far apart. But if a fiber network operator uses a route between the two cities that's 50 miles longer than a competitor's route, it can add critical milliseconds, pushing the round trip time above a level acceptable for high-speed trades. Cont.: connectedplanetonline.com ------

To: Frank A. Coluccio who wrote (31683)	4/27/2010 10:22:26 PM
From: Frank A. Coluccio	Respond to of 46821

[Latency] Interop Wrap: Latency Craze Craig Matsumoto \| Light Reading \| April 27, 2010 In rounding up some product news at Interop, which is being held this week in Las Vegas, you might think we'd talk all about 100 Gbit/s. There's so much more to life than wire speeds, though. Today's roundup includes talk of low latency, management systems, and smarter chips. Cont.: lightreading.com; ------

To: Frank A. Coluccio who wrote (31683)	4/30/2010 11:43:23 AM
From: Frank A. Coluccio	Respond to of 46821

[Latency] Growth Ahead for Low Latency Colo Market Rich Miller \| Data Center Knowledge \| Apr 8, 2010 Snippet: On High-Freq Trading - “For me it’s all about the lowest latency,” said Kaplan. “It’s not about cost. The cost of infrastructure is nothing.The latency game is important, because it’s how much of the market is making money these days.” On Cost vs. Compromise - “If you can’t be at least as fast as anyone else, it’s hard to put a cost on it,” agreed Steve Bonanno, chief technology officer at Direct Edge. ”I can’t compromise on my IT budget if I’m sacrificing latency.” datacenterknowledge.com ------

To: Frank A. Coluccio who wrote (31683)	5/18/2010 1:44:35 PM
From: Frank A. Coluccio	Respond to of 46821

Low Latency * 2 from today's Lightwave Newsletter Timing everything when selling low-latency network services By Stephen Hardy \| Lightwave \| May 18, 2010 It seems everyone with a network -- or at least everyone with a network in the New York/New Jersey area -- has hopped on the low latency bandwagon. The competition to serve the needs of financial services companies whose algorithmic trading requires shaving microseconds and even nanoseconds off of connection latency therefore has become intense. It’s not surprising then to hear one veteran of this fray to say that when making a low-latency services sale, timing is everything -- and not just trade timing. Cont.: tinyurl.com -- CFN Services deploys Cyan Z-Series for low-latency data center services Lightwave \| May 18, 2010 CFN Services has deployed Cyan's Z-Series packet-optical transport platforms to provide low-latency networking for the Low Latency Global Exchange infrastructure and expand its presence in the Frankfurt and London financial markets. Cont.: tinyurl.com -- View video highlighting CFN (nee CSX Railroad) work in low latency areas: cfnservices.com (scroll to bottom of page) ------

To: Frank A. Coluccio who wrote (31683)	6/8/2010 1:02:29 PM
From: Frank A. Coluccio	Respond to of 46821

Economic Incentives Applied to Web Latency James Hamilton \| Perspectives \| June 07, 2010 Last month I wrote about Solving World Problems with Economic Incentives bit.ly . In that post I talked about the power of economic incentives when compared to regulatory body intervention. I’m not really against laws and regulations – the EPA, for example, has done some good work and much of what they do has improved the situation. But 9 times out of 10 good regulation is first blocked and/or water down by lobby groups, what finally gets enacted is often not fully through and brings unintended consequences, it is often overly prescriptive (see Right Problem but Wrong Approach), and regulations are enacted at the speed of government (think continental drift – there is movement but it’s often hard to detect). If an economic incentive can be carefully crafted such that its squarely targeting the desired outcome rather than how to get there, wonderful things can happen. This morning I came across a great example of applying economic incentive to drive a positive outcome rapidly. First, some background on the base issue. I believe that web site latency has a fundamental impact on customer satisfaction and there is considerable evidence that it drives better economic returns. See The Cost of Latency for more detail on this issue. Essentially I’m arguing that there really is a economic argument to reduce web page latency and astute companies are doing it today. If I’m right that economic incentives are enough, why isn’t the latency problem behind us? Cont.: perspectives.mvdirona.com [FAC: I've been anticipating this form of analysis with respect to Internet latency for a while now. Actually, I'm actively crafting one of my own that runs parallel to that of James' above. Too much emphasis has been placed in the popular press on algorithmic (high-frequency) stock trading, and not enough on the broader implications of latency in respect of global inter-networking considerations, where cloud apps, in particular, are concerned. The future of algorithmic, HFT aside (there's no telling where that will go once sobriety sets in), the good news is that some of the attention that's been lavished on trading apps will soon begin to bear fruit elsewhere, as well. The reader comments sent to the article cited above are also worthy of a read, IMO. Thoughts?] ------

To: Frank A. Coluccio who wrote (31683)	6/10/2010 6:35:44 PM
From: Frank A. Coluccio	Respond to of 46821

[Low Latency] Breaking Barriers to the Low Latency Stephen Hardy \| Lightwave Magazine \| June 2010 online.qmags.com [pp.11-14] ------

To: Frank A. Coluccio who wrote (31683)	6/22/2010 11:09:27 AM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 46821

[Low Latency] Spread Networks to debut low latency New York to Chicago dark fiber route by Stephen Hardy \| Lightwave \| June 22, 2010 It’s not easy to keep a fiber build quiet. But after several years of infrastructure development, Spread Networks is about to take the wraps off of a new, ultra low latency dark fiber route between the financial centers in New York and Chicago -- as well as a differentiated business strategy. Cont.: bit.ly fac: what are the odds that the high-frequency trading space might some day become an anachronism resulting from regulators' flattening the field? not so high, ya say? and they say the world is flat ... ------