Lokesh Madan Lokesh Madan is a strategy business consultant for various high frequency trading companies worldwide with more than 12 years of experience in financial technology, research work and business development

World Exchanges: Their Connectivity Latency with Indian Exchanges.

1 min read

Latency arbitrage is the practice of buying or selling an trading instrument slightly ahead of other market participants, by taking advantage of small delays in price dissemination. So Measuring the Latency between Exchanges makes sense when comes to Inter Commodities Hedging or Inter-Country Latency arbitrage.

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The Round trip latency can be calculated with a simple ping test between co-location servers(placed at two different exchanges). The details of the latency is provided below with respected to Indian Exchanges and ranked based on the Marketcap and liquidity of the exchanges. This data is generally useful for HFT players who are willing to go with Latency arbitrage trades between global exchanges.

World Exchanges: Their Connectivity Latency with Indian Exchanges.

Rank Exchange Head­quarters Latency Round trip from India Mumbai
1 New York Stock Exchange New York 200 – 225 ms
2 NASDAQ New York 200 – 225 ms
3 Tokyo Stock Exchange Tokyo 124 ms
4 London Stock Exchange Group London 112 – 140 ms
5 Euro next Amsterdam 112 – 140 ms
6 Hong Kong Stock Exchange Hong Kong 89 – 120 ms
7 Shanghai Stock Exchange Shanghai 155 ms
8 Toronto Stock Exchange Toronto 210 – 240 ms
9 Frankfurt Stock Exchange Frankfurt 142 – 155 ms
10 Australian Securities Exchange Sydney 158 – 172 ms
11 Bombay Stock Exchange Mumbai 2 ms
12 National Stock Exchange of India Mumbai 2 ms
13 SIX Swiss Exchange Zurich 115 – 145 ms
14 BM&F Bovespa São Paulo 255 – 300 ms
15 Korea Exchange Seoul 132 – 160 ms
16 Shenzhen Stock Exchange Shenzhen 160 ms
17 BME Spanish Exchanges Madrid 156 ms
18 JSE Limited Johannesburg 185 ms
19 Moscow Exchange Moscow 147 – 175 ms
20 Singapore Exchange Singapore 58 – 100 ms
21 Taiwan Stock Exchange Taipei 112 – 120 ms

 

Chicago CME ( 192 – 220 ms Mumbai )

Dubai DGCX ( 24 – 45 ms Mumbai )

For Ultra low latency Inter Country Co locations & Proximities connectivity on above mention round Trip no.

Lokesh Madan

Skype – lokesh.madan3

Blog : http://algotradingindia.blogspot.in/

Lokesh Madan Lokesh Madan is a strategy business consultant for various high frequency trading companies worldwide with more than 12 years of experience in financial technology, research work and business development

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3 Replies to “World Exchanges: Their Connectivity Latency with Indian Exchanges.”

  1. It takes around 2.7 ms for the order to execute at the exchange itself (time between Receiving the order, validating the order and finally executing the order at the exchange). And the Internet in India being one of the world’s worst when it comes to latency – it takes 127 ms for the order to reach from Delhi to Mumbai. So even if someone is running algorithm it will take 127 ms for the quotes to reach him, approx 10-20 ms for his software to make the calculations, 127 ms again for sending back the order and then 2.7 ms for execution for a trader residing at 1400 km distance i.e. approx 270 to 280 ms. HFTs are no special algorithms for making money they are just getting the data faster than others owing to colocation facilities.

    1. May be you do not know that Indian exchange’s offer Co Location services by which you can host your algos at Exchange data center.. so your over all latency can be reduces.. & right now BSE offer Tick to trade latency of 200 – 250 Micro second where as NSE test Tick to Trade with in limit of 1000 Micro second.

      1. Yes you are correct about correlation facilities provided by Indian exchanges but they are too costly for an individual to afford. Actually a bunch of brokers are providing semi automatic trading in which a signal is generated at traders terminal and one has to just click enter which of course is useless because those tecnical indicators are a matter of the past and by the time we hit enter the market has already moved. Actually apart from colocation servers everyone is getting a stale data and this discrepancy is being exploited by the colocation traders. Many brokers these days are luring gullible traders on the name on algorithm trading ( which is actually semi automatic trading based on old world obsolete indicators). I would like to know if someone is trading from Mumbai within a radius of 30-50 km from NSE or BSE exchange what would be the appromimate latency. And your articles provide a great insight to present day markets and they surely are very helpful.

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