Low latency is a topic within
capital markets, where the proliferation of
algorithmic trading requires firms to react to market events faster than the competition to increase profitability of trades. For example, when executing
arbitrage strategies the opportunity to “arb” the market may only present itself for a few milliseconds before parity is achieved. To demonstrate the value that clients put on latency, a large global investment bank has stated that every millisecond lost results in $100m per annum in lost opportunity.