How Low-Latency Bloomberg Data May Affect Trading Execution
Summary
The document considers why trading firms might locate near Bloomberg’s data center and relay information to New Jersey over microwave links. It distinguishes market news from information available through Bloomberg’s electronic trading platform, EMSX. The answer suggests that firms may seek earlier access to broker quotes, including which broker offers a security and at what rate, so they can act on those quotes sooner.
The proposed benefit is improved execution: earlier information may help a firm obtain a more favorable spread or higher order priority. This is an explanation offered in response to a question, rather than a documented account of the firms’ actual applications. The original poster says the firms did not disclose their use cases, and the answer frames its identification of EMSX as a belief. The document supplies no latency measurements, trading results, or independent evidence that the suggested mechanism applies to those firms.
Key ideas
- Firms may use microwave links to reduce the time needed to relay Bloomberg data.
- The answer suggests the data may come from Bloomberg’s EMSX electronic trading platform.
- Earlier access to broker quotes could help traders seek better spreads or order priority.
- The specific data source and use case are presented as a possibility, not confirmed facts.
Tags
Full text
# What is the benefit of having proximity to the Bloomberg datacenter? # What is the benefit of having proximity to the Bloomberg datacenter? I own and operate a datacenter adjacent to Bloombergs Datacenter in Orangeburg NY. We have had a couple of trading firms come to us due to our proximity to Bloomberg to receive "data" from them quicker. They then use direct microwave shots to send this information to NJ, as the microwave is faster than the fiber routes available. I am trying to figure out what "data" they are getting from Bloomberg to be able to market this to a wider audience and what is the benefit. I understand previously that they wanted to be near the exchanges for low latency trading but now it seems all of the latency has been taken out of the trading portion and they rely on getting the "news/data" faster to make those trading decisions. Any help would be appreciated, I am happy to share more info if it is needed but the two initial trading firms are pretty tight lipped on the applications they are purchasing from Bloomberg. ## Answer by Rads (score 1) https://quant.stackexchange.com/a/27633 It is possible that they are getting "news", but what I feel these firms are doing is connecting to EMSX offered by Bloomberg which is an electronic trading platform. Which is why they would probably invest in sending microwave shots of data back to NJ. The data is : which broker offers which security at what rate. Earlier access to data implies that they can get a smaller spread ( from the going market rate) and the orders they place are higher on the list ( hence have more priority).
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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.