Connectivity
From MarketsWiki
Connectivity refers to the ability to make, maintain and transport packets of data between two points. Consistent and reliable connectivity is essential in an electronic trading environment.
In general, a trading system's effectiveness is defined by its connectivity and its latency, or the time delay of data transmission between two points. Latency and connectivity have become increasingly important in a high-frequency trading environment.
Exchanges offer two types of connectivity:
- Indirect connectivity in which a customer's broker, futures commission merchant (FCM), clearing firm sends trades to the exchange platform.
- Direct connectivity means that the customer has a line directly to the exchange platform. [1]
References
- ↑ Getting Connected. CME Group.