In stock exchange and other automated trading environments, network latency is expressed as the delay induced as a transaction packet traverses the network. In this environment, millisecond-level delays can have a profound effect on a trader's results. Financial companies operating high speed trading networks must measure network latency to prove they are providing the lowest possible latency to traders.
The IntellaFlex Solution – Time Stamping
The network latency test solution is to monitor each packet several times as it traverses the trading network, and stamp each monitored instance of a packet with an accurate and precise time as it enters the network monitoring switch. By comparing the timestamps on a given packet at several points in the network, total transactional latency can be determined.