Creating a private circuit is one of the ways in which smart investors achieve low-latency trading. A common scenario is to co-locate a trading server in the same data center as Exchange Matching Engine A, and have a private WAN connections to another data center where Exchange Matching Engine B is located. In this case, the path between the trader’s server and Exchange A is short, and the path to Exchange B routes over the WAN, and the trader has a lower-latency connection to Exchange A. This is just one of many ways that traders rather than players optimize their process for maximum results.
ED&F Man Capital Markets Hosting & Infrastructure is a global financial brokerage business and the financial services division of ED&F Man.