This delay is caused by the time it takes to physically move data packets into a telecommunications circuit. Serialization delay depends on both the size of the packet of data being transmitted and the physical circuit speed being used. For a packet size of 512 bytes, serialization delays are:
Circuit speed One-way serialization delay (ms)
From the above it can be seen that the one-way serialization delays are significant at speeds of 2Mbps and below where they can contribute as much as 2 milliseconds (ms) or more. For many real-time trading applications that send trading instructions and receive acknowledgements, the above figures can be doubled.
Vital Voice & Data uses very high-speed circuits in our core network to reduce serialization delays between major financial centers. We also implement the fastest appropriate circuits between Vital Voice & Data access points-of-presence (PoPs) and customers’ sites, including exchanges and market data providers.