Spread Networks complements low latency network with colocation services

Spread Networks is complementing its low latency networking service for financial companies and connecting New York and Chicago with new server colocation services.

Spread raised eyebrows in the low latency networking race with the debut of its 13.33 millisecond dark fiber network in June closely followed by and 15.75 ms route trip low latency wavelength service.  

Financial customers will now be able access Spread Networks' collocation facilities in Chicago, Illinois and Carteret, New Jersey (the endpoints of Spread Networks fiber backbone), and in Cleveland, Ohio (mid-route on the network.)

Spread, of course, is not alone in its low latency network ambitions. The low-latency opportunity has attracted a laundry list of both incumbents (Verizon) and competitive carriers (Intellifiber, Level 3, Optimum Lightpath, RCN Metro and XO Communications).

What's driving these operators to rabidly pursue the low latency land rush has been the rise of electronic and algorithmic trading platforms where a financial trading company could either make or lose millions of dollars lost in a millisecond.

Ed Gubbins, Senior Analyst for New Paradigm Resources Group recently noted to FierceTelecom that "millions of dollars can be made or lost in a millisecond (a thousandth of a second), a microsecond (a millionth of a second) or less" so what "they need is not more bandwidth, however, but much less latency--the time it takes for a bit to reach its destination" that can't be met with typical WAN connections.

For more:
- see the release (PDF)

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