What is ultra-low latency direct market access?

This refers to a computer network built to cope with high-frequency trading. With modern trading strategies, speed is of the essence. Direct market access is a means of bypassing broker-dealers and interacting directly with the order book of an exchange.

Where have you heard about ultra-low latency direct market access?

It’s not really something the average investor concerns themselves with, but the race for ultra-low latency is a hot topic of conversation among high-frequency traders and technology vendors. Only speeds of under 1,000 microseconds qualify as 'ultra low'.

What you need to know about ultra-low latency direct market access.

Direct market access systems built specifically for high-frequency trading are capable of handling vast volumes of orders, and experience delays of no greater than 500 microseconds. Typically, order volumes of more than 5,000 a second can be executed in 100 microseconds.

Because of the lack of interaction with a broker, this approach is sometimes referred to as ‘no touch', and often used in combination with high-speed algorithmic trading.

Find out more about ultra-low latency direct market access.

Read our definition of direct market access for more insight into high-frequency trading.