During December's volatility spike, traders experienced different execution rates based on their network routing configurations. One group observed a 95% fill rate for orders, while another faced rejection rates of over 40%. Network topology and routing optimization are crucial for professional trading, as they impact order reliability and speed. Proper routing can reduce rejection rates significantly during high volatility. Poorly routed connections can add substantial latency, affecting fills. Most order rejections are due to network inconsistency, not broker actions, as erratic patterns lead to more stringent price validation and higher rejection rates.
Traders using identical strategies faced varied execution rates based solely on their server's network routing configuration, with some achieving 95% fill rates and others over 40% rejection.
Network routing quality influences how orders reach the broker's servers, with poorly routed connections causing an additional 150-300ms latency, irrespective of server power.
Most order rejections arise from network inconsistency rather than broker intervention. Erratic latency patterns trigger market maker systems to flag orders, raising rejection rates.
Professional trading emphasizes network path optimization over raw connection speed, as direct routes with minimal hops outperform faster connections that are poorly routed.
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