HF/Shortwave Adoption

The quest for speed in trading is inevitable. 

Since early 2020, trading companies have adopted HF/Shortwave wireless links to gain a significant latency advantage. 

Here are some public sources indicating the adoption wave.

The shift to HF speeds in recent years in related trades between Chicago and Frankfurt

Deutsche Börse analysis shows how HF/shortwave across Chicago (CME) to Frankfurt (EUREX) replaced traditional links for trading DAX futures based on ES signals. 

HF speeds rule in Frankfurt index trading following events in Chicago

Another analysis by  Stefan Schlamp of Deutsche Börse shows CME to EUREX cross-correlation chart – how quickly trades in EUREX respond to trade events at CME.  

The analysis performed mid-2022 indicates that HF speeds, providing a 9ms advantage over the transatlantic fastest Fiber+MW, dominate in correlated stock indices trading.

HF speeds are evident in Tokyo trading following events in Chicago

Analysis by Stephane Tyc from McKay Brothers shows trades in Tokyo (Nikkei) following trades in Chicago (ES). Screenshot from the video was taken at 17:32.  

Raft Links

Transmit Receive Status Raft Link Latency Best Fiber
Chicago Frankfurt In Production Sub 30 ms 36 ms
Chicago London In Production Sub 27 ms 34 ms
Chicago Shanghai In Production Sub 54 ms 69 ms
Chicago Tokyo In Production Sub 42 ms 58 ms
New York Tokyo In Production Sub 53 ms 62 ms
New York London In Production Sub 25 ms 30 ms
London New York In Production Sub 29 ms 30 ms
Tokyo Chicago Upcoming Sub 42 ms 58 ms
London Tokyo Upcoming Sub 50 ms 69 ms

* Future links latency is estimated

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