Traders with need for speed turn to laser beams - MarketWatch

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These are external links and will open in a new window. In the world of computerised financial trading, every second counts and superfast fibre-optic networks may no longer be quick enough. Laser beam technology originally developed for the military is being rolled out to shave time off trades. The company behind it, Anova, said it would be as fast as microwave networks and as reliable as fibre. The company has formed a joint venture with AOptix, which was founded by two California scientists who developed the laser technology for the US military to improve communication between fighter jets.

Initially the system, which combines lasers and wireless dishes, will be rolled out on short-range US and UK networks, with the first long-haul route between the UK and Germany being added later. High-frequency trading HFT is driven by complex algorithms that allow traders to jump ahead of competitors by exploiting minute discrepancies in price on exchanges in different cities.

In such trading, every millisecond counts and the competition to provide ever-faster trading networks is fierce.

High-Speed Stock Traders Turn to Laser Beams - WSJ

The first microwave connection between London and Frankfurt was turned on last October by Perseus Telecom. They cannot entirely replace fibre optics because the signal can be disrupted by bad weather and the network has limited capacity. Other technologies that may be used in future to help make trades even faster include the use of drones as platforms for wireless links.

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High Speed Stock Traders Turn to Laser Beams | Anova Technologies

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BBC News News navigation Sections. Financial traders turn to lasers for faster deals 2 May These are external links and will open in a new window Share this with Facebook Share this with Twitter Share this with Messenger Share this with Messenger Share this with Email Share Share this with These are external links and will open in a new window Email Share this with Email Facebook Share this with Facebook Messenger Share this with Messenger Messenger Share this with Messenger Twitter Share this with Twitter Pinterest Share this with Pinterest WhatsApp Share this with WhatsApp LinkedIn Share this with LinkedIn Copy this link http: Image caption High-frequency trading is replacing traditional methods In the world of computerised financial trading, every second counts and superfast fibre-optic networks may no longer be quick enough.

It will compete with new microwave networks that are increasingly being used by traders. MICROWAVE TRADING NETWORKS Originally used in the s for phone networks Microwave networks rely on dishes that are installed on buildings and mobile phone towers Signals can be disrupted by bad weather They have limited capacity.

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