Wednesday, March 07, 2007

The Paradox of Low-Latency XML for Algo Trading

Dow Jones announced support for XML-tagged news in response to Reuters support for the same announced in December of 2006.

http://www.finextra.com/fullstory.asp?id=16606

"The ultra-low-latency service delivers economic and corporate news in precise and discrete elements in XML-tagged fields."

Since bandwidth and I/O are big contributors to latency, I am surprised these vendors aren't also offering a more proprietary, compression-based structured news encoding to reduce bandwidth requirements.

I guess the next big announcement in this space will be the availability of structured news services like these being co-located in the exchanges' data centers. That's the real ticket to low-latency.