Anticipating a period of volatility ahead of the US elections in November, the connectivity and IT infrastructure provider for the financial services industry said that banks, exchanges and trading firms could all benefit from the new back-up route.
It is geographically diverse from the PC-1 submarine cable system used for most primary routes and has only a five millisecond difference in latency compared to the primary connection. Avelacom said the route is therefore the fastest non PC-1 route and best placed to support clients experiencing problems with their primary route.
Aleksey Larichev, CEO of Avelacom said: “Financial markets can be extremely vulnerable during periods of high volatility and firms need to be able to rely on their infrastructure and back-up systems to sustain high performance.
“Avelacom is setting the standard for back-up routes to prevent outages and losses as a result of hardware failure or a severed cable. By proactively optimising the trans-Pacific and North American terrestrial fibre routes, Avelacom provides fully protected network solutions to support a robust trading environment for latency sensitive financial institutions: banks, prop shops, hedge funds, brokerage firms,” Larichev added.
Connectivity between US- and Asia-based exchanges is a particular focus as it is expected that this is where bursts of volatility will be seen. Reflecting this, the route will be also used to connect to other major Asian financial hubs - Hong Kong, Shanghai, Singapore, Taipei and Thailand.
With increased trading and data transfer volumes, Avelacom said the biggest challenge during such periods of high volatility was to ensure operational continuity and resiliency to unexpected halts as a result of network and hardware issues or outages. Even a one second outage can lead to losses, particularly during periods of high volatility.
Avelacom’s back-up routes, currently being boosted, are designed to ensure clients experience no unplanned downtime and are able to continue to trade, with very low latency.
