Skip to main content

How to reduce Market Data API's latency

If you're experiencing delays when using the Market Data API, there are a few solutions to consider. These strategies address both business and technical concerns.

Here are some key approaches to explore:

Technical solutions​

  1. AWS Direct Connect with Dedicated Port
    • High-Bandwidth and Low-Latency Connection: AWS Direct Connect with a Dedicated Port offers a high-bandwidth, low-latency connection between your infrastructure and AWS. This dedicated fiber connection avoids the public internet, providing a direct and secure link.
    • Consistent Performance: This setup is ideal if you require consistent, predictable network performance for latency-sensitive applications such as high-frequency trading.
    • Integration with VPC Peering: AWS Direct Connect can be used with VPC Peering to optimize network performance further, providing a direct path from your on-premises environment to your AWS VPC.
    • AWS Direct Connect Documentation
  2. CoinAPI Cross-Connect
    • Direct Physical Link: Cross-connect provides a dedicated physical link between CoinAPI’s infrastructure and your data center, offering the lowest possible latency and high reliability. This is particularly beneficial for clients in colocation facilities or data centers where a direct connection can be established.
    • Enhanced Security and Speed: This direct connection not only reduces latency but also enhances security and data transfer speed. Contact CoinAPI for specific cross-connect implementation details.
  3. AWS VPC Peering
    • Direct Network Routes: For companies using AWS, VPC Peering enables direct network routes between your AWS VPC and the company's, reducing latency by keeping traffic within AWS’s infrastructure.
    • AWS VPC Peering Documentation
  4. GeoDNS Routing
    • Regional API Endpoints: Implement GeoDNS Routing to ensure that your requests are directed to the nearest data center, minimizing latency by reducing the distance data must travel.
    • Global Traffic Management: GeoDNS helps distribute traffic effectively across different regions, improving load balancing and redundancy.
    • AWS Route 53 GeoDNS Routing Documentation
  5. WebSocket API
    • Real-Time Data: WebSocket API offers persistent connections for real-time data delivery, which can significantly reduce latency by allowing data to be pushed instantly.
    • WebSocket API Documentation
  6. Optimized Data Fetching and Caching
  7. FIX API for High-Frequency Trading
    • For companies requiring ultra-low latency, the FIX API provides a protocol designed for high-frequency trading environments, ensuring fast and reliable data transmission.
    • FIX API Documentation

Business-oriented solutions​

  1. Service Level Agreements (SLAs)
    • Provide SLAs that guarantee specific latency levels, offering confidence in service reliability. These can be part of premium offerings to meet the needs of companies with critical latency requirements.
  2. Performance Monitoring and Alerts
    • Consider implementing tools that allow companies to monitor their API performance in real-time, with alerts for when latency exceeds predefined thresholds.
    • Performance Testing Guide

Combined strategy​

By incorporating AWS Direct Connect with a Dedicated Port, CoinAPI’s cross-connect, AWS VPC Peering, and GeoDNS Routing into your latency reduction strategy, you can get a highly robust solution with minimal latency tailored to your needs. These options, combined with other technical optimizations and business-oriented services, provide a comprehensive approach to addressing latency concerns, making your Market Data API an attractive option for high-frequency trading platforms and other latency-sensitive applications.