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Concepts

Our goal in this chapter is to describe some of the common concepts related to network design for the financial markets (see Figure 3.1). This is not a comprehensive exploration of network design. However, as automated execution and high-frequency trading have become more important in the markets, certain ideas related to networks have become critical for those who wish to understand trading. We introduce those trading-related concepts here.

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Figure 3.1 Network concepts are important to understanding the workings of networks employed by the Street.

Latency

Before discussing some of the other concepts we will introduce, we want to define ...

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