Building Automated Trading Strategies October 2018 | Page 26

➢ External:
Once the message has been sent by the adaptor, it leaves the trading
infrastructure and potentially goes over a wire to a pipe (T1 line), gets
processed by the ECN, comes back from the ECN on the T1, and then on the
wire.
➢ Internal:
Once the message is received by the adaptor, it is translated by the
translation layer, then processed by the aggregator/disaggregator layer, by
the OMS, and then by the control layer. A decision is potentially made that
goes back to the OMS, aggregator/disaggregator layer, and back to the
translation layer, then finally the adaptor.
In simple words, latency can occur in many different parts of a data stream
process:
❖ Trader’s hardware configuration
❖ Software configuration
❖ Internet Provider’s connectivity module
❖ Broker’s servers
❖ Liquidity Provider’s servers
❖ General market-based servers
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