How Private Network Latency Can Affect Crypto Market Making

Summary

The document raises an infrastructure question about market making on a cryptocurrency exchange. It compares public network routing with a private link available to some exchange participants and asks how a latency difference might affect quoting, execution, and the viability of a market-making model. The stated context is a team considering cloud infrastructure and whether unequal access to faster connectivity creates a competitive disadvantage.

No responses, measurements, or trading results are included, so the document does not establish the size of any performance effect or offer a way to adapt a strategy. It frames latency as an execution and market microstructure concern that a trader might investigate through exchange-specific measurements and model evaluation. Its reported latency range is a claim in the question, not independently verified evidence, and the discussion is specific to the described exchange and infrastructure setting.

Key ideas

• Network routing latency can matter to the execution of a market-making strategy.
• Private connectivity may give some exchange participants faster access than public routing.
• The practical effect depends on how the trading model responds to latency differences.
• The document asks about experience but provides no measurements or strategy results.

Tags

# Privatelink latency impact


# Privatelink latency impact












I am working with a team on a market making algorithm on Huobi. We are integrating our infrastructure in AWS and when you are a S tier you can get a privatelink which is about 10 to 50 ms faster than routing thru public networks. Are there any serious market makers here who have experienced the difference? It may be a decision to not go to Huobi as there is an 'unfair advantage' for groups or companies with less capital than the big boys. Or has someone integrated this latency disadvantage and how did it impacted their model?

So the two questions are:

- What is your experience when getting a privatelink connection at Huobi?

- What is the impact on your model when integrating the 'unfair disadvantage'?

Shown in full with attribution under the source's licence. Licence: CC BY-SA 4.0 (Stack Exchange)

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.