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Quantitative Finance · Glossary

What is Latency corridor?

Definition 11.4 Networks, Hardware and Trading Infrastructure · Chapter 11 — The European Map

A latency corridor is a pair of trading sites between which several networks compete to carry latency-sensitive traffic, each selling its route by its one-way latency: London–Frankfurt, Chicago–New Jersey, Zurich–Frankfurt.

Microwave routeGeodesicPublishedFloor inRouteFibre floor
(km)(ms)air (ms)factor(ms)
LD4 – FR2 (2015)677.72.322.2611.0263.305
LD4 – Bergamo IT3 (2024)992.2<4< 43.311<1.21< 1.214.839
Table 11.2. Published European microwave routes against their floors: McKay Brothers’ 2015 round trip halved, and Euronext’s 2024 figure for EWIN, which is an upper bound, so its route factor is too. Data: nw_europe.route_rows().
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