with The Full FX View
Posted by Colin Lambert. Last updated: May 15, 2025
LDA Technologies is launching what it says is a “unique” product that solves one of the major challenges in e-trading – fair and equal access to market data.
The firm says its new multicast distribution system synchronises exchange-provided customer ports to within 50 picoseconds (ps), a 98% improvement over existing Layer 1 switches, even more when using conventional Layer 3 switches. This ensures, the firm says, that an exchange can provide users with fair and equal access to market data.
LDA explains that while exchanges strive to deliver market data to all customers simultaneously, some of the switches in their infrastructure often have three to five nanoseconds (ns) of jitter between switch ports. Furthermore, cabling between switches and customers adds an additional five nanoseconds per meter. In an exchange’s effort towards improved fairness, they often adjust cabling lengths, but with its multicast distribution system, LDA says the root issue is now resolved and it makes all transitional remedies unnecessary.
The Full FX View
While the technological expertise involved in this is admirable, one has to question what sort of market structure requires firms to be trading in picoseconds (and no idea how fast that it, I’m guessing very)?
It is a very fine line that has to be walked, of course, because innovation is what largely improves markets, but the sense here is we are talking the type of technological spend that only very few firms can afford – and only then because they make so much money out of latency strategies.
The concept of fairness is an honourable one and should be encouraged, but it seems here that the fairness is largely amongst firms that already have an unfair advantage. Yes, other participants can spend the tech dollars and compete, but surely there is a point when we can all agree that fast enough is good enough?
It is notable that several equity markets are embracing OTC models involving private rooms and dedicated liquidity streams, perhaps they ought also to include latency floors? The technology involved here would probably be just as valuable ensuring that everyone has access at, for example, 150 microseconds (and to stress, that is a randomly-generated number), and that would, in my view, make the markets even fairer, by not leaving so many participants behind.
“The LDA team has achieved something thought to be impossible in the past, we can now deliver a solution that brings fair and equal access to exchange market data,” says Vahan Sardaryan, co-founder and CEO of LDA. “Our fair multicast distribution system handles synchronization at the network endpoints. This results in jitter as low as 50 ps between customer ports, being able to even compensate for cable length differences between them. As we all know, exchanges are increasingly looking for ways to provide a uniform level of service to clients, and now they can deliver on that promise.”
Additionally, unlike conventional Layer 1 switches, which deliver the entire data stream to every client, LDA’s multicast distribution system further reduces unnecessary system latency by providing only specific market data matching a client’s subscription. This function is typically handled by Layer 3 switches, which contribute substantial additional latency, often measured in microseconds, within the exchange’s infrastructure. LDA’s multicast distribution system delivers revolutionary low jitter while supporting traditional multicast packet handling.
“LDA’s fair exchange product will enable exchanges to ensure that access to market data is fair for all participants and the integrity of the market is preserved,” it states. “Furthermore, it will allow them to offer an enhanced service to clients while going above and beyond regulatory compliance guidelines.”
