It’s About Time: MiFID II Scrutinizes Firms’ Clocks, Time-Synch Tools

In a multi-timezone, pan-European marketplace, the accuracy of timing sources and timestamps will be an important factor in maintaining orderly, transparent markets.

MiFID II’s requirements for standardized, industry-wide time synchronization are intended to protect investors by ensuring a standard of precision that matches the precision of high-speed trading practices. And as an unintended consequence, the regulations are also pushing market participants toward new ways of delivering accurate timing that also combat other threats that could interfere with the precision of a trading firm’s time source, reports Joanne Faulkner.

There’s an old math problem that asks if two trains leave different cities heading toward each other at different speeds, when and where do they meet? As students, most of us probably thought we’d never have cause to apply that problem in real life. But for anyone dealing with real-time and low-latency data, the issue of how long it should take to receive data versus how long it actually takes…

 

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