About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Precise Time – A Data Centre Utility

Subscribe to our newsletter

Endace suggests the Commission should require any of these venues that offer co-location services to make GPS timing signals available to users of the venues at a “reasonable cost”.

This has already been advocated in an article I wrote for Equinix’s Winter 2010/2011 Newsletter. If you missed it first time around, here’s a ‘reprint’:

We’ve all heard about the “cost of a microsecond” and the “latency arms race”. The relentless increase in price and transaction data rates in electronic trading, and the drive to remain competitive, are forcing financial markets participants to invest in the latest technology to support spiralling bandwidth requirements and to drive down data flow latency. This has in turn given birth to a whole new industry in latency monitoring solutions, based on the premise that in order to manage something, you have to be able to measure it.

This evolution has now played out to the point where traditional measurement techniques are no longer sufficiently accurate. The latency of hardware and software components used in trading systems is typically quoted in microseconds. Measurement solutions must therefore have resolution and accuracy in the sub-microsecond realm. At TS-Associates we call this field Precision Instrumentation.

The foundation of Precision Instrumentation is precise time keeping. This means having access to an accurate reference clock and a means of distributing time synchronisation. The traditional network-based time synchronisation protocol NTP is no longer suitable. Better solutions such as PTP or various analogue signalling techniques are able to provide the necessary accuracy.

The universal reference clock in common use is GPS time. Each GPS satellite has an onboard atomic clock that provides a stable and precise time reference. However, access to GPS time requires that a GPS antenna be positioned with line of sight to GPS satellites – usually on the roof of a data centre facility. In any multi-tenant facility that permits cable routes to the roof, you will find many GPS antennae, one or more for each tenant. This approach is obviously neither scalable nor cost effective, and indeed problematic for some buildings.

Data centres are in the business of providing the essential utilities – space, power, cooling and connectivity. We propose that the next service to drop into the essential utility layer will be access to a precise time reference.

Henry Young is CEO of TS-Associates.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: GenAI and LLM case studies for Surveillance, Screening and Scanning

As Generative AI (GenAI) and Large Language Models (LLMs) move from pilot to production, compliance, surveillance, and screening functions are seeing tangible results – and new risks. From trade surveillance to adverse media screening to policy and regulatory scanning, GenAI and LLMs promise to tackle complexity and volume at a scale never seen before. But...

BLOG

What the SEC’s New Treasury Clearing Rule Means for Dealers and Buy-Side Firms

Since December 2023, the Securities and Exchange Commission (SEC) has been steering the U.S. Treasury market toward a structural shift: mandating central clearing for broad categories of cash and repo trades in U.S. Treasuries. The objective is clear, reducing counterparty risk, improving transparency and operational resilience. But the transition presents several challenges that have yet...

EVENT

TEST Event page 1

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Corporate Actions

Corporate actions has been a popular topic of discussion over the last few months, with the DTCC’s plans for XBRL and ISO interoperability, as well as the launch of Swift’s new self-testing service for corporate actions messaging, STaQS, among others. However, it has not been a good start to the year for many of the...