Ultra-Low Latency Tech Will Shake Up US Equities in Lieu of Reg NMS Update

Ultra-Low Latency Tech Will Shake Up US Equities in Lieu of Reg NMS Update

May 26th, 2020 - Financial, Global Connectivity

By Jeff Mezger, Director of Product Management, TNS

Trading in US equities has become more efficient under Reg NMS but has undoubtedly also grown in complexity. Now 15 years since it came into force, there are significant concerns centering on whether the national market system may no longer be fulfilling its statutory goals of ensuring the broad availability of transaction and quotation data.

To this end the SEC launched a consultation in February on proposed changes to the way exchange market data is collected, consolidated and disseminated to the public. This includes expanding “the content of consolidated market data information to include, among other things, five levels of depth-of-book quotations and certain odd-lot quotes”.

While promising, these discussions are likely to take years of consultations, refinements and review, which could be derailed at any stage by ongoing presidential and congressional elections, as well as changes to the SEC Chair. It is, therefore, essential to continue strategically planning your equities trading infrastructure based on the Reg NMS obligations today.

This year TNS has completed a significant engineering milestone which can give US equities traders a competitive edge. The introduction of a new ultra-low latency architecture for the New York area makes it now possible to achieve connection speeds of just 5-85 nanoseconds.

How Can Speeds This Low Be Achieved?

TNSXpress Layer 1 redefines connectivity using a single hop architecture that is up to 10 times faster than traditional Layer 3 architectures. It is an innovative, custom solution that simplifies the network and eradicates the need for multiple switches that can each add elements of delay.

Now available for NYSE in Mahwah, Nasdaq in Carteret and CBOE in the Equinix NY4/NY5 data center in Secaucus, TNSXpress Layer 1 combines with TNS’ Managed Hosting solution to offer the fastest access to market data and order routing for the US equities markets. Eleven equities feeds are now available via a single supplier agreement with TNS, including:

  • NYSE
    • NYSE Integrated
    • American Integrated
    • Arca Integrated
    • NYSE Chicago Integrated
  • CBOE
    • BZX PITCH
    • BYX PITCH
    • EDGA PITCH
    • EDGX PITCH
  • Nasdaq
    • Nasdaq TotalView
    • BX TotalView
    • PSX TotalView

Leverage Connectivity to Steal Advantage

As a single-source provider, TNS provides turnkey hosting solutions that deliver everything from hardware and project management through to system installation and testing. Combine this with the ultra-low latency of Layer 1 and our ability to offer up to 4 terabit fiber bandwidth between the exchanges we truly are one of the leading infrastructure as a service partners for US equities traders. Global market data, high touch local support and lower cost of ownership than DIY models, creates a compelling proposition that also helps simplify compliance with Reg NMS requirements.

Revamping Reg NMS and achieving common ground among disparate market participants will not be an easy task. Until such time, I believe TNSXpress Layer 1 is the ultimate tool to help US equities traders reduce complexity, improve efficiency and gain a competitive edge.

Find details for your appropriate TNS representative on our contact page