Editing Latency (engineering) (section)

=== Capital markets ===
Joel Hasbrouck and Gideon Saar (2011) measure latency to execute financial transactions based on three components: the time it takes for information to reach the trader, execution of the trader's algorithms to analyze the information and decide a course of action, and the generated action to reach the exchange and get implemented. Hasbrouck and Saar contrast this with the way in which latencies are measured by many trading venues that use much more narrow definitions, such as the processing delay measured from the entry of the order (at the vendor's computer) to the transmission of an acknowledgment (from the vendor's computer).<ref>{{cite web |last=Hasbrouck |first=Joel |title=Low-Latency Trading |author2=Saar, Gideon |url=http://www2.binghamton.edu/som/files/GideonSaar.pdf |access-date=18 July 2011 |page=1 |archive-url=https://web.archive.org/web/20111111224846/http://www2.binghamton.edu/som/files/GideonSaar.pdf |archive-date=11 November 2011 |url-status=dead }}</ref> Trading using computers has developed to the point where millisecond improvements in network speeds offer a competitive advantage for financial institutions.<ref>{{cite news |url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10736960/High-frequency-trading-when-milliseconds-mean-millions.html |title=High-frequency trading: when milliseconds mean millions |work=The Telegraph |access-date=2018-03-25}}</ref>