>> Financial institutions don't use the internet for trading transactions Zero. They rent their service from
>> dedicated cable companies. That includes private transatlantic cables with guaranteed bandwidth and low latency levels
>> often costing millions per year. They don't want Little Jonnie's Pr0nhub downloads delaying multimillion dollar
>> currency or share transactions.
Having been on the team that consolidated and relocated Merryl Lynches London IT data centres, and the team that moved and consolidated BP's futures trading platforms, I am fully aware how the the physical comms infrasture is provided and stitched together, having at one time used all the available dark fibre in London for a period of time.
And I still say that Latency is NOT the primary driver of London's trading location. Its merely part of the capacity, resilience and redundancy matrix For example in one instance the backup recovery datacenter was placed next to the very unassuming building that has the UK's main internet* hub on the isle of dogs**, not the primary centre. Latency is a small part of the total money making money process.
London is (was?) the primary banking and trading centre because of history, and cemented its recent place because of regulation. Rather lack of it. The "light' touch of the FCA since Maggie deregulated the financial markets has been key, pretending to police the market but actually allowing a freehand back door over european banking and finance.
London finance is on the slide, not least because of the money shift to the Far East*** and mostly because of Brexit, deal or no deal its going to go down the pan slowly or quickly depending on what happens.
>> And if that "Brexit rabble" comment was aimed at me,
It wasn't, I was merely warning against actually being guilty of Project fear.
*I used the term "internet' because that's a concept most people understand when it comes to connecting stuff together. They no not nor care what TCP, IP or UDP is.
** Ironically one of the major European routing centres is on the isle of dogs, comms until recently going over one bridge only, and subject to flooding in the event of a North Sea surge.
***One of the primary reasons to remain within the EU is to be in a consolidated group to shield again the rise of the Far East (china) or the protectionista hawks of the US.
Last edited by: Zero on Sun 8 Sep 19 at 21:23
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