The new offering is intended to bring fairness to market data distribution.
A provider of ultra-low latency solutions for capital markets, LDA Technologies (LDA) is launching a multicast data distribution system that handles synchronization at network endpoints, which is intended to bring fairness to market data distribution, officials say.
“Exchanges strive to deliver market data to all customers simultaneously, but some of the switches in their infrastructure often have three to five nanoseconds (ns) of jitter between switch ports. Furthermore, cabling between switches and customers adds an additional five nanoseconds per meter,” according to the LDA announcement. Exchanges “often adjust cabling lengths, but with LDA’s multicast distribution system, the root issue is now resolved.”
The new system “synchronizes exchange-provided customer ports to within 50 picoseconds (ps), a 98 percent improvement over existing Layer 1 switches, even more when using conventional Layer 3 switches, ensuring that an exchange can provide users with fair and equal access to market data,” officials say.
“We can now deliver a solution that brings fair and equal access to exchange market data,” says Vahan Sardaryan, co-founder and CEO of LDA, in a prepared statement. “This results in jitter as low as 50 ps between customer ports, being able to even compensate for cable length differences between them.”
The LDA Layer 1 multicast distribution system also helps reduce system latency “by providing only specific market data matching” to clients’ subscriptions. “This function is typically handled by Layer 3 switches, which contribute substantial additional latency, often measured in microseconds, within the exchange’s infrastructure.”
Based in Mississauga, Canada, LDA has products and services for the ultra-low latency, networking, and Field-Programmable Gate Array (FPGA) markets, and offers consultancy services, officials say.
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