Achieving Ultra-Low Latency in Trading Infrastructure

The Need for Speed in Modern Trading

In today’s financial markets, milliseconds, or even microseconds, can make the difference between profit and loss. As trading strategies become more sophisticated and execution speeds continue to shrink, ultra-low latency has emerged as one of the most critical elements in electronic trading infrastructure.

Whether you’re executing algorithmic trades, engaging in high-frequency trading (HFT), or operating across multiple global exchanges, your infrastructure’s latency has a direct impact on performance and competitiveness. In a market where opportunity windows are incredibly short, latency can no longer be treated as a secondary consideration.

At BSO, we specialise in building and maintaining global trading infrastructure designed for speed, resilience, and intelligence. 

What is Ultra-Low Latency and Why It Matters in Trading

Latency refers to the time it takes for data to travel from one point to another. In trading, latency often measures the round-trip time between a trader’s systems and a financial exchange. The lower the latency, the faster a trade can be executed.

Ultra-low latency typically refers to latencies measured in microseconds to low milliseconds. In the context of capital markets, this level of performance is no longer a luxury, it’s a prerequisite.

Here’s why:

• Faster Execution: A delay of just a few milliseconds can lead to missed trades or less favourable prices.

• Price Discovery Advantage: Quicker access to market data allows traders to act before the broader market reacts.

• Improved Arbitrage Opportunities: Ultra-low latency infrastructure enables firms to take advantage of pricing discrepancies across global exchanges.

• Enhanced Order Book Visibility: Real-time responsiveness allows for more accurate modelling and better decision-making.

As market participants continue to seek an edge in execution speed, the need for optimised infrastructure has become a defining factor in trading success.

Key Components of a Low-Latency Trading Infrastructure

Achieving ultra-low latency requires a holistic, integrated approach. Every component in the infrastructure, from physical location to software protocols, must be fine-tuned for speed and performance.

Network Connectivity

At the core of low-latency trading lies the network. High-speed, deterministic connectivity is essential to ensuring data moves between endpoints with minimal delay.

• Dedicated Fibre Links: Fibre remains a high-performance option for most routes, offering stable and low-latency transmission.

• Microwave & Radio Frequency (RF): For latency-sensitive routes, especially between major financial hubs, microwave and RF technologies offer faster-than-fibre transmission due to line-of-sight paths and reduced signal repeaters.

• Cross-Connects: Physical cross-connects within data centres eliminate unnecessary network hops and enable direct access to exchanges.

Proximity Hosting & Colocation

Hosting trading systems as close to exchanges as possible is a key tactic for reducing latency.

• Proximity Hosting: BSO provides hosting within metres of major financial exchanges to eliminate unnecessary travel time.

• Colocation Services: By placing infrastructure within the same data centre as an exchange, firms can reduce network latency to single-digit microseconds.

Optimised Routing & Protocols

Routing efficiency can make or break low-latency performance.

• Optimised BGP Routing: Smart route selection reduces the number of network hops and avoids congested paths.

• Custom Protocols & Compression: Minimising the size of data packets and prioritising time-sensitive information enhances performance.

Hardware & Software Optimisations

• Customised Hardware: Network cards, switches, and servers designed for low-latency use cases reduce jitter and throughput issues.

• FPGA & Kernel Bypass Technologies: These technologies reduce CPU load and cut latency in critical trading functions.

• Lightweight Operating Systems & Tuned Stacks: Every layer of the tech stack is optimised for speed.

Monitoring & Real-Time Intelligence

Maintaining low latency requires proactive oversight.

• Latency Monitoring Tools: Real-time visibility into network performance ensures issues are identified and resolved quickly.

• Route Analytics: BSO uses intelligent systems to dynamically adjust routing based on latency metrics and market activity.

Global Financial Hubs and Latency-Sensitive Routes

The world’s financial markets are interconnected, but not all routes are created equal. Achieving ultra-low latency depends on intelligent network design across strategic financial hubs.

Some of the most latency-sensitive trading corridors include:

• London ↔ New York: Critical for forex and equities trading.

• Tokyo ↔ Chicago: Key for derivatives and commodities.

• Singapore ↔ Frankfurt: Important for arbitrage strategies in global markets.

BSO’s proprietary routes are engineered to deliver best-in-class performance across these hubs. Our solutions bypass conventional limitations and deliver unmatched latency benchmarks.

We maintain a presence in 240+ data centres across 33 markets, enabling direct access to over 75 global exchanges. This expansive footprint ensures our clients enjoy competitive advantage wherever they trade.

View our network map

Challenges to Achieving Ultra-Low Latency

While the goal is clear, there are multiple challenges standing in the way of truly ultra-low latency infrastructure.

• Distance and Physics: Even light has speed limits. Minimising physical distance between systems is essential.

• Geopolitical and Regulatory Barriers: Infrastructure deployment may be restricted or slowed by regulatory frameworks in some regions.

• Environmental Factors: Microwave and RF networks can be affected by weather or line-of-sight interruptions.

• Congestion and Jitter: Shared infrastructure and poor network design can increase delays and unpredictability.

Overcoming these challenges requires experience, agility, and a global partner with deep market knowledge.

BSO’s Approach to Low-Latency Trading Networks

At BSO, ultra-low latency isn’t just a service, it’s a philosophy that guides our infrastructure design and operational decisions.

Here’s what sets us apart from the noise:

• Custom-Built Network Architecture: Our network is designed specifically for capital markets, with routes continuously optimised for performance.

• Microwave and RF Innovation: We invest in the latest technologies to shave milliseconds off critical routes, particularly in major hubs like London and New York.

• Real-Time Monitoring: Intelligent systems assess network health and adjust in real-time to ensure consistent low-latency delivery.

• Dedicated Support: Our expert engineers are available 24/7, providing white-glove service for mission-critical infrastructure.

With BSO’s Crypto Connect, we are positioned to provide trading firms with the best low latency, cloud connections that are needed for a global reach.
From trading desks to exchanges, we empower firms with the tools and infrastructure they need to compete and win, in the fastest markets on Earth.

Use Cases: Real-World Examples from the Financial Sector

Global Investment Bank

Challenge: Needed to reduce latency on its London ↔ New York equities trading route.
Solution: BSO deployed a dedicated microwave solution with minimal hops.
Result: Achieved a 40% reduction in latency and improved execution accuracy.

HFT Firm in Asia

Challenge: Existing network was unstable and prone to jitter on Singapore ↔ Tokyo route.
Solution: BSO implemented a hybrid microwave and fibre setup.
Result: Latency dropped by 25% and enabled faster arbitrage trading.

Future Trends in Low-Latency Trading

As the industry continues to evolve, and so do the expectations around latency.

AI & Predictive Routing

Intelligent systems will predict network congestion and auto-adjust routes in real time.

Edge Compute & Ultra-Local Hosting

Processing closer to the source of data will reduce backhaul latency.

Decentralised Exchanges (DEXs) 

As DEXs become more mainstream, low-latency access to blockchain networks may become a new frontier.

Sustainability in Infrastructure

Balancing performance with carbon-conscious networking is becoming increasingly important.

BSO is actively developing next-generation solutions that will keep our clients ahead of these trends.

How to Get Started with Optimising Your Trading Infrastructure

If latency is holding your trading operations back, now’s the time to take action. The first step is to audit your current infrastructure to identify where latency bottlenecks may be occurring. From there, it’s important to assess which trading routes are most critical to your strategy and whether your connectivity supports optimal performance. Evaluating your hosting locations is another key factor. Proximity to major exchanges and the quality of your data centres can significantly influence latency. 

Finally, partnering with a specialist like our team at BSO, we ensure your infrastructure is designed and maintained for ultra-low latency performance. We offer a complimentary consultation to help assess your existing setup and provide tailored recommendations that give your trading operations a competitive edge.

Frequently Asked Questions

Q: What’s considered “ultra-low latency”?
A: Generally, round-trip times under 1 millisecond between trading systems and exchanges fall into the ultra-low latency category.

Q: What is low-latency?

A: Low-latency refers to the minimal delay in the transmission of data from one point to another. In trading, it specifically means reducing the time it takes for market data to reach trading systems—and for orders to reach exchanges. The lower the latency, the faster and more efficiently trades can be executed. In high-speed financial markets, even microseconds can significantly impact profitability, making low-latency infrastructure a vital component of a successful trading strategy.

Q: Can BSO help with compliance and regulatory requirements?
A: Yes, we work closely with clients to ensure network design meets the regulatory standards of each region.

Q: Is BSO the best low-latency provider?

A: BSO is recognised globally for delivering high-performance, ultra-low latency connectivity solutions tailored for the financial services industry. With proprietary network routes, extensive coverage across all major trading hubs, and a commitment to constant optimisation and innovation—including microwave and RF technology—BSO is a leader in the space. Our clients trust us to deliver consistently low-latency performance with world-class support, making us the preferred partner for many of the world’s most sophisticated trading firms.

Q: What markets does BSO cover?
A: BSO operates in 33 markets worldwide, with access to over 75 global exchanges and 240+ data centres.

Q: Do trading firms need ultra-low latency networks?

A: If your trading strategy depends on speed, precision, and timing—such as algorithmic or high-frequency trading—then ultra-low latency infrastructure is essential. It enables faster execution, improves access to liquidity, and reduces slippage in volatile markets. Even for firms not engaged in HFT, low-latency networks can enhance order flow management, market data processing, and overall operational efficiency. In an increasingly competitive and fast-moving market, latency is not just a technical metric—it’s a business differentiator.

Q: How can I optimise my trading infrastructure with low-latency?

A: Optimising for low latency starts with understanding your current network performance and identifying areas of improvement—whether it’s route efficiency, data centre proximity, or hardware bottlenecks. Working with a provider like BSO allows you to leverage bespoke, high-speed connectivity, including proximity hosting, microwave routes, and advanced monitoring tools. By aligning your infrastructure with your trading goals, you can ensure minimal delay, maximum resilience, and superior execution performance across all your trading activities.

Talk to a Low-Latency Infrastructure Expert

BSO has helped some of the world’s most sophisticated trading firms design, deploy, and maintain ultra-low latency infrastructure. If you’re ready to optimise performance and stay ahead of the competition, we’re ready to help.

Should you have any project? Should you need more information? Please reach out!