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28Stone and Google Cloud: Redefining Low-Latency Trading in the Cloud

In a groundbreaking partnership, 28Stone, a prominent technology and consulting firm for the financial services sector, has collaborated with Google Cloud to demonstrate that high-frequency trading can indeed migrate to the cloud without compromising speed or reliability. According to a recent benchmark study, their findings have unveiled latency measurements that are simply astounding: Tick-to-Trade (T2T) latencies as low as sub-2 microseconds (µs) on Google Cloud's C3 instance types!

The analysis was designed to challenge the conventional wisdom regarding latency-sensitive trading, focusing on whether these quick turnaround times could be sustained in a cloud-based environment. The results of the study were not just promising; they were an affirmation that modern technology can meet the rigorous demands of high-speed trading.

Study Breakdown

Led by Rohit Bhat, Google Cloud's General Manager and Managing Director in Financial Services, the benchmark aimed to measure the end-to-end T2T process, which includes market-data ingestion, decision-making, and order transmission. The precision of their results revealed sub-2 µs latencies while maintaining low jitter—a significant finding for firms that depend on stable performance.

Bhat stated, “Our goal was to implement a practical pattern and comprehensively measure the full journey from tick to trade.” This affirmation illustrates that financial institutions can expect ultra-low-latency targets using Google Cloud without any significant hinderance.

Implications for the Financial Sector

This study comes at a critical time when institutions are modernizing their trading systems. The implications are vast:

• - Performance Consistency: Attaining T2T latencies below 2 µs confirms that cloud infrastructures can deliver Wall Street-level performance.
• - Throughput Dynamics: The analysis indicated the capability of processing high message rates exceeding 5 Gbps, accommodating the ever-growing velocity of market data.
• - Unified Access: Enhanced accessibility allows firms, regardless of size, to leverage high-speed trading technology that was once only attainable by market giants.
• - Strategic Scalability: The capability to rapidly scale across Google Cloud’s extensive network grants more agile, cloud-based innovation opportunities within capital markets.
• - Cost Efficiency: Financial institutions can now harness ultra-low-latency trading capabilities without needing to invest in multi-million dollar infrastructures upfront.

Conclusion: A Cloud Frontier for Trading

The benchmark results reflect a broader transformation; cloud computing has evolved beyond handling mere batch processing or back-office functions. It is now positioned as a viable platform for front-office trading and real-time decision-making at scale. This transition further emphasizes the performance of Google Cloud's C3 machines and global networking capabilities to effectively support ultra-low-latency environments.

Apu Shah, CTO and Partner at 28Stone, expressed the significance of this collaboration, stating, “28Stone has a proven track record of delivering high-quality cloud-focused FinTech solutions for our clients. With Google Cloud, we can further diversify and enhance these capabilities, leveling the playing field for diverse organizations.”

The complete insight and methodologies on how the benchmark was established, including how latency, jitter, and throughput were accurately measured, can be found in the detailed white paper titled “Google Cloud Tick-to-Trade Benchmarking.”

About 28Stone Consulting

28Stone Consulting specializes in delivering personalized technology solutions and consulting services for the global capital markets. Founded in 2011, the firm is committed to improving operational efficiency while minimizing risks through a customized approach. With a presence in New York, Riga, and London, they focus on the unique needs of various asset classes. For more information, visit 28Stone's website.