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.
|Transmit||Receive||Active Date||Raft Link Latency||Best Fiber/MW|
|Chicago||Frankfurt||In Production||Sub 31 ms||36 ms|
|Chicago||London||In Production||Sub 29 ms||34 ms|
|Chicago||Shanghai||In Production||Sub 59 ms||69 ms|
|Chicago||Tokyo||In Production||Sub 50 ms||58 ms|
|New York||Tokyo||In Production||Sub 54 ms||62 ms|
|New York||London||Coming Up||Sub 25 ms||30 ms|
|London||New York||Coming Up||Sub 29 ms||30 ms|
|Tokyo||Chicago||Coming Up||Sub 50 ms||58 ms|
Completing The Markets Triangle NYC-LDN-TOK
|London||Tokyo||Coming Up||Sub 50 ms||69 ms|