Bringing low latencies to crypto trading
Avelacom | Low Latency Connectivity, IT Infrastructure & Data
Ultra-low latency connectivity, IT infrastructure & data solutions
Most popular crypto exchanges are located in the cloud, where data flows between virtual server machines and via virtual networks. For region-to-region connectivity some participants use the AWS network.
The beauty of cloud virtual nature is that it provides lots of benefits, such as:
-??????flexibility and scaling (both up and down),
-??????cost efficiency,
-??????ease of setup – in hours not in months.
The cloud looks like the future when compared to dedicated connectivity and dedicated physical servers in data centers used by the conventional financial industry. It lowers barriers and makes trading more widely accessible for new generations.?
The drawback is that the cloud is not latency optimized. And for many market makers and arbitrage traders extra milliseconds are critical.
Why is this? Institutional traders use highly automated strategies for market making and arbitrage. They have developed these market access methods over decades. These include on-site colocation in proximity to matching engines and end-to-end private connectivity with the lowest network latency.?
These sophisticated strategies are actively being adopted in crypto. The trend is driven by TradFi and ex-TradFi companies, and also by the growing number of native crypto companies. All these companies are looking to reduce network latency in order to be able to access and transport market data and send orders ahead of their competitors. This will give them an edge in an industry where milliseconds make a massive difference.
The huge rise in crypto volatility makes fixed latencies while connecting to crypto exchanges even more important. Also, continuity of data transmission and network uptime are equally important because crypto trades 24/7.
Avelacom has been providing solutions to these challenges since the emergence of crypto market trading and its adoption by institutions. We serve financial services companies of all sizes. Most of our clients use latency sensitive strategies. We pioneered low latency solutions by applying the same principles and methods that are used in TradFi across conventional banking and financial markets. These are geographical proximity and end-to-end low latency connectivity.
We have extended our proprietary network to the cloud by using direct connects in data centers that are associated with particular AWS and Alibaba regions. This provides the lowest latency numbers between AWS regions that host crypto exchanges.
领英推荐
This network coverage map shows exactly how we cross over our network infrastructure for all possible financial markets – TradFi, CeFi and DeFi.
Avelacom’s clients can improve latency compared to their current connectivity. The difference is more than 80 milliseconds for some of the key directions.
This diagram shows how clients can connect VPCs across different AWS and Alibaba regions via Avelacom’s proprietary network.
This type of connectivity solution can be used for different use cases including arbitrage trading and collecting market data feeds from remote exchanges.
Avelacom has a valuable and unique offer: a free trial of low latency connections across public clouds, of which we invite you to take advantage. This is the future of connectivity solutions for trading.
It’s simple to configure, taking hours – not days – to set up, and it’s cost- efficient.
We welcome you to take an advantage of this opportunity, so you can start testing improved latencies literally today in your real-time trading environment. We would be happy to walk you through all the connectivity options and assist you with this setup.?