Aviat Networks, a leading expert in microwave networking solutions, announced today that it has reached an agreement with McKay Brothers, a leading provider of low-latency private carrier services to High-Frequency Trading (HFT) firms, to deliver low-latency wireless transport equipment and services for McKay Brothers' microwave network connecting Chicago and New York City financial centers. The Aviat Networks solution is based on the industry-leading Eclipse Packet Node microwave radio platform, which meets the requirements of McKay Brothers in terms of latency, flexibility and upgradeability.
"For McKay Brothers, the Eclipse Packet Node wireless transmission platform proved ideal for building a low- latency wireless transport network," says Michael Pangia, president and CEO, Aviat Networks. "Plug-in modules for the Eclipse platform enabled us to quickly accommodate McKay Brothers' need for a low-latency solution in its wireless transmission network."
"Aviat Networks' Eclipse Packet Node platform has been exceptionally engineered," says Bob Meade, PhD, co-founder of McKay Brothers. "It has ultra low-latency, which will allow our microwave network to be milliseconds faster than any fiber network could ever be on this route. And Aviat Networks engineered this low-latency platform without compromising the other advanced telecom functionality that is critical to the engineering of our network. If you consider the number of low-latency routes in the world, the number of trading firms and the strength of Aviat Networks' offering, I think this will be a substantial opportunity for the company."
Large market opportunity for microwave
According to the TABB Group in their 2010 research report, "Long Distance Latency: Straightest and Fastest Equals Profit," written by research analyst Kevin McPartland, the value of investments made by financial service firms for connectivity solutions was approximately $2.2 billion in 2010, excluding anticipated spending by private trading firms on their proprietary networks.
In the world of high-frequency trading, speed matters most. Modern microwave technology can achieve lower latency than fiber optic alternatives because the speed of light in air is approximately 50 percent faster than the speed of light in fiber optic cables. Microwave also provides the ability to set up direct line-of-sight paths between transmission points while fiber must be routed under streets and around obstacles, adding latency. Due to its inherent ultra low-latency features, the Eclipse Packet Node is a natural fit for high-frequency trading, where speed is critical.
Network rollout H1 2012
The McKay Brothers expects to complete its network deployment in the first half of this year. Compared to the other routes currently filed with the FCC, McKay's network will be the straightest and have the fewest hops.