Verizon launches faster network for financial firms
New Verizon high-speed network opens in New York and Chicago; expanding to other markets later this year
Computerworld - Verizon today launched a new low-latency network for financial services firms that can complete a stock trade between New York and Chicago in as little as 14.5 milliseconds.
The new Verizon Financial Network Premier Low-Latency Service shaves as much as 5 milliseconds off the company's current offering, a change that can translate into millions of dollars for high-frequency traders.
The new service, which becomes part of the Verizon Financial Network, uses higher performance networking technology from Ciena and takes the shortest possible path between the two metropolitan areas, according to Verizon.
Verizon is targeting the service to global banks, hedge funds, pre- and post-trade service firms and money managers who use high-performance computing algorithms and networks for speedy transactions.
High-frequency trading firms require low-latency networks to execute arbitrage transactions and algorithmic trading with minimal delay. Fiber distance between trading locations introduces latency, as does the equipment used to light the fiber.
Verizon plans on expanding the new high-speed network to other U.S. markets later this year.
CME Group, a financial derivatives marketplace, plans to use the new Verizon service in its Aurora, Ill., data and colocation center to enable companies in Chicago and New York to trade on CME Group's platforms and more quickly exchange market data.
"We're creating a secure, reliable high-speed path along one of the busiest financial trading routes," Chandan Sharma, managing director of Verizon's financial vertical markets, said in a statement.
Lucas Mearian covers storage, disaster recovery and business continuity, financial services infrastructure and health care IT for Computerworld. Follow Lucas on Twitter at @lucasmearian, or subscribe to Lucas's RSS feed . His e-mail address is email@example.com.
Read more about Financial IT in Computerworld's Financial IT Topic Center.
Crafty hackers hack craft stores -- again.
Michaels Stores (NYSE:MIK) has finally confirmed the details of the point-of-sale hack revealed in January. It's unclear what's taken them so long -- the company claims the hack was "highly sophisticated," but everyone uses a blah-blah phrase like that.
Your humble blogwatcher notes that the problem persisted for more than a month after the news first broke. smh.
In IT Blogwatch, bloggers are aghast that, for the second time, the company's POS was hacked -- lasting almost nine months.
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