Network Costs Pose Opportunity for Pan-Asian Financial Networks

At first glance, network optimization doesn’t seem like a high-priority differentiator for global investment banks trading into and across Asia, given that network costs for these services seem ‘fixed.’ Yet, many banks and brokers struggle to compete in Asia because of lackluster end-user experience, noted Ian Salmon, Accedian Market Consultant – Finance, in a recent Automated Trader article. Plus, network optimization can and does have an impact on the cost of doing business. 

Low-quality financial services execution in Asia isn’t good for the region or the market’s participants, Salmon pointed out, especially since Asia is already a challenging region in which to operate, given its location, fragmented geography, and high volatility, among other factors.

Yet, with a history of poor quality services in this region, there is a significant market opportunity for firms able to differentiate on quality of experience (QoE). The first step toward that, Salmon said, is investing in a new level of performance monitoring and bandwidth control (think millisecond sampling rates, for example).

Such forensic detail can enable identification of disturbances like micro traffic bursts, and lead to actions that significantly improve network utilization. Knowing which services are causing bursts can give operators the information needed to more strategically route traffic based on priority.

“Re-routing non critical traffic to other, less expensive networks and ensuring events such as batch transfers or daily updates take place outside of the trading window means banks can optimize the performance of their lowest-latency, most expensive networks,” Salmon explained.

Read the full article for more insight into the cost of network capacity into and through Asia, and what operators can do to keep their costs to a reasonable level without sacrificing service quality. Related