Optimize tick-to-trade latency for digital assets exchanges and trading platforms on AWS

This article provides an in-depth exploration of optimizing tick-to-trade latency for digital asset exchanges and trading platforms on AWS, focusing on the technical infrastructure and performance considerations for centralized exchanges (CEX) and high-frequency trading market makers (MM).

• Key latency optimization areas include network, compute, application, and system layers
• High-frequency trading (HFT) firms aim for low double-digit microsecond tick-to-trade performance
• AWS provides advanced timing services with sub-100 microsecond accuracy using Precision Time Protocol (PTP)
• Cluster placement groups (CPGs) can reduce network latency by up to 39%
• Fair and equal access is critical, with exchanges working to minimize latency disparities

The article highlights AWS's ongoing improvements in cloud infrastructure to support low-latency digital asset trading, including hardware packet timestamping and precise time synchronization technologies.