Protocols are good but Customization is better for speed

Diop Papa Makhtar
2 min readJan 24, 2020

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Traders screen

Communication standards that define how clients and servers should interact involve acknowledgment (see figures). Acknowledgment is the part of the communication process which lets the receiver of data tells the other side that it received the data correctly. This functionality makes communication stronger by avoiding data losses. The fact is this acknowledgment part can take some nano or microseconds and let me recall you that inside financial markets each nanosecond counts. The nanoseconds we gain can be worth one or several winning trades. Is the introduction of Acknowledgement and its performance in data transmission quality worth having when it comes to high-frequency trading? Quality can be some time neglected, that’s why when we are working with financial data transmission it is worthier to cut off this acknowledgment step. that’s why UDP which uses non Acknowledgment is privileged over TCP which does. Some sectors need specific standards, even if UDP is good for Broadcasting financial data, it's better to have a custom-built protocol designed for market data transmission which favors speed. That’s what FIXROOTER does.

Acknowledgment Definition (source Wikipedia)
Acknowledgement (ACK) in Client-Server Communication
Non acknowledgment Standard in the IEEE 802.15.4
A Router for Markets data transmission and decoding

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