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.
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.
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