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

Upcoming Webinar: Navigating the Build vs Buy Dilemma: Cloud Strategies for Accelerating Quantitative Research

Date: 20 May 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes For many quantitative trading firms and asset managers, building a self-provisioned historical market data environment remains one of the most time-consuming and resource-intensive steps in establishing a new research capability. Sourcing data, normalising symbologies, handling corporate actions and maintaining...

BLOG

Diginex Labour Rights Expert Acquisition Highlights ESG Data Shift to Risk

Sustainability data and RegTech provider Diginex’s recent acquisition of The Remedy Project labour and human rights advisory illustrates how ESG is transforming from an investment strategy to a risk mitigation objective among financial companies. The London-based company, which last year purchased sustainability data and analytics provider Matter DK, anticipates that the The Remedy Project’s expertise...

EVENT

TradingTech Summit London

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

The Data Management Challenges of Client Onboarding and KYC

This special report accompanies a webinar we held on the popular topic of The Data Management Challenges of Client Onboarding and KYC, discussing the data management challenges of client onboarding and KYC, and detailing new technology solutions that have the potential to automate and streamline onboarding and KYC processes. You can register here to get immediate...