low-latency-internet

Low Latency Internet

Everyone needs to connect to someone else, it's the nature of networks. Traders connect to brokers, brokers connect to exchanges, and data providers connect to clients. Ideally, these connections occur with the lowest possible latency and highest possible reliability. When these connections occur via the Internet they often take sub-optimal paths due to the inadequacy of the BGP routing protocol that forms the basis of Internet routing.

To address the failings of BGP, Nuveum uses a proprietary dynamic routing algorithm we developed called Dynamic Path. Dynamic Path continually searches for the lowest latency path across multiple tier-1 internet backbone providers to an endpoint of interest (broker, data provider, ect...). In some cases this will be the same path chosen by traditional BGP routing, in some cases not. Sometimes the difference in latency is small (1ms), other times can be quite large (10ms or more).

Dynamic Path is a major improvement over traditional BGP routing and represents a major step forward for Internet trading.

The Failure of Standard BGP Routing

Nearly every hosting and colocation provider on the planet touts high speed Internet connectivity resulting from a collection of "tier-1 network providers" and their use of BGP-4 routing. As far as video streaming and web downloads are concerned, this statement holds mostly true. But for trading systems the situation is starkly different. Trading systems don't stream out huge blocks of time insensitive data, they send small messages that ideally are delivered instantly. Instant delivery requires low latency, and that is simply not a feature BGP routing provides, despite any marketing message you might hear to the contrary. The truth is that network latency is not a factor in BGP path selection. So BGP does absolutely nothing to ensure the path chosen is actually the one with the lowest latency.

Worst still, many people don't realize that the Internet itself is not static. Traffic flows and backbone infrastructure is constantly changing. Circuits are put in and taken out of service. Equipment fails. Denial of service attacks cause spontaneous and unexpected congestion, resulting in spiking latency. Despite the continuing capacity increases these problem still exist, and are especially problematic when milliseconds count. A fast path today could be a slow path tomorrow. It's simply impossible for any provider using BGP routing alone to insulate and protect clients from these facts of life on the Internet. Yet BGP is the standard, used by every network, colocation, and hosting provider out there.

Nuveum Dynamic Path

Features

Dynamic Path is a core feature of the Nuveum platform and is based on routing technology we developed in-house, specific for the requirements of Internet trading. No other service provider on the planet has Dynamic Path technology, and not surprisingly, we don't intend to share it.

Whether your trading is algorithmic or manual, the lowest possible latency routing achieved by Dynamic Path provides significant benefits.

The three main features of Dynamic Path are:
  • Provides the lowest possible latency between any two points on the Internet, subject only to the laws of physics
  • Rapidly adapts and overcomes changing Internet conditions, to always provide the lowest latency path
  • Provides increased reliability by rapidly switching away from broken or inconsistently performing network paths


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Benefits

Algorithmic and High Speed Traders
The benefit to algorithmic traders seeking minimal latency are obvious. You always want the lowest latency path, and Dynamic Path delivers exactly that.

Manual Traders
Manual traders are less fixated on low latency, yet still benefit from improved interactivity, responsiveness, and reliability that results from Dynamic Path. Degraded network connectivity is something you do not want during a trading session.

Expanded Network Reach
A more subtle benefit to both algorithmic and manual traders  is that Dynamic Path delivers low latency to more networks from any single location, being more options within reach. By bringing more brokers, exchanges, ISVs, EAs, partners, and clients closer in network terms, Dynamic Path provides you more options  with whom and how to do business. It also eliminates or mitigates the business case for expensive "proximity hosting" solutions, providing operational cost savings as well.

Dynamic Path Client Personalization
Dynamic Path has one more trick up it's sleeve.  Nuveum clients can affect the decision making of Dynamic Path by providing IP address information for the Internet destinations of specific interest to them. Dynamic Path will then use that information to help prioritize the path selection processes, ensuring minimal latency to the destinations clients care most about. The benefits of this crowd sourced continually improve the platforms for all clients.