As more financial firms and individual traders are embracing high frequency financial trading, every microsecond is important and can translate to millions of dollars of profits or losses. Financial exchanges are deploying sophisticated risk mitigation and surveillance technology to further enhance the safety, stability and integrity of the markets.

In order to provide unique low latency network solutions for high frequency trading environments, Exalt (News - Alert) Communications, an innovator of next-generation packet microwave backhaul systems, has announced Adaptive Latency Control.

This system offers an approach to slashing latency and minimizing network noise in financial trading networks supporting high frequency trading (HFT).

Exalt architecture offers microwave network planners to optimize financial trading networks for ultra-low latency by defining Exalt radio configurations on-the-fly with superior ease of deployment, on-board diagnostics, and economics.

Amir Zoufonoun (News - Alert), CEO of Exalt said in a statement, "Now they are looking for a better microwave designed specifically to achieve ultra-low latency. This is a next generation HFT microwave, and Exalt is delivering it today with advances in technology, such as our unique Adaptive Latency Control."

So, how does Exalt system deliver the lowest latency with lowest noise over the end-to-end network?

As compared to traditional microwave vendors that work on pre-configured radios or repeaters, Exalt radios can be configured on-the-fly as network signal regenerators, network recoding systems or endpoints. In this way, regenerators that go through the microwave signal produce the lowest possible latency, while recoding systems use forward error correction (FEC) to the signal to reduce noise that is introduced when the signal is simply regenerated. Now, endpoints down-convert the microwave signal and apply FEC for the Ethernet connection to the HFT network at each end of the microwave link.  These modes can be selected under software control, so network engineers can deploy the same Exalt system on each link and then, from a network operations center, optimize radio personalities to deliver the lowest latency with lowest noise over the end-to-end network.

Network operators can use Exalt system diagnostics to view the number of packet errors at each link in the network and then adjust Exalt microwave radio personalities to optimize network performance and reliability.