Low Latency Solutions

Today's security trading involves ultra fast, high volume and automatic trading that is extremely time sensitive. Financial trading companies invest millions developing algorithms that can automatically execute high volume trades based on analyzing large amounts of data in real time. Such companies invest in high capacity computing machines to execute trades in a fraction of a second. These systems rely on a network for the execution of trades and a delay of nano-seconds can have a dramatic impact.

In this environment, financial services companies and carriers building networks to serve these customers are looking at the optical network for optimized low latency transport.

So, what causes latency in an optical transport system? Well, as funny as it may seem, the number one culprit is fiber. The fiber over which the system runs will be the highest contributor to latency by far. Latency caused by fiber is about 5 microseconds per kilometer. In optical transport systems optimally tuned for minimal latency, the components of the optical line system itself will introduce less latency than about 10km worth of fiber. But, when Latency is a concern, every nano second counts so, there is still reason to tune the optical transport system for low latency.

So, when we look to at a transport system and identify the components that cause the most latency, which are they ? Of course, they are the components that are constructed with fiber ! These are components like amplifiers and dispersion compensation.

Components that are high contributors to latency in an optical transport system

Another culprit when it comes to low latency is manipulation of the data stream. Often, a key contributor to latency in a transport system is the transponder (or muxponder). Whenever the data stream is manipulated (for instance to multiplex different data types or to add forward error correction), there is a processing delay which causes a delay in the ultimate delivery of data.

Ekinops utilizes the best in breed technologies for latency elimination available in the transport components market. For instance, Ekinops utilizes fiber bragg gratings for dispersion compensation instead of dispersion compensation fiber. Fiber bragg gratings consist of minute fiber patches where the use of fiber compensation technology requires large spools of fiber. Less fiber means less latency. Ekinops also offers transponders that are amongst the lowest in latency in the industry. Ekinops has created special purpose transponders designed specifically for low latency.