What Is the Role of Co-Location in Reducing Latency for Institutional Traders? ▴ Learn

What Is the Role of Co-Location in Reducing Latency for Institutional Traders?

Co-location involves placing a trader's servers and infrastructure physically inside or immediately adjacent to the exchange's data center. This drastically reduces the physical distance the data must travel, minimizing network latency to the lowest possible level (near the speed of light).

This is critical for high-frequency trading strategies to gain a competitive edge in execution speed.

What Is ‘Co-Location’ and How Does It Provide an Advantage to HFT Firms?

What Is “Colocation” and How Does It Give HFT Firms an Advantage in Minimizing Their Own Slippage?

How Does Co-Location of Servers Affect the Fairness of Order Execution on a CEX?

How Can ‘Colocation’ Mitigate Latency Risk for Dark Pool Participants?