A millisecond could cost you millions.
In the modern financial industry, the business is inseparable from the computer and computer network services, such as the occurrence time of bank business transactions, accurate time of financial transactions, email information, file creation and access time, database processing time and account password recognition, etc., all of which involve the time synchronization between network of devices and computers. Furthermore, highly accurate synchronization in financial applications is a key success factor and a mandatory requirement for being able to fulfill legal obligations.
A legislative framework, namely “MiFID II” instituted by European Union (EU) to regulate financial markets requires stringent governance and policies around time-stamping of records and transactions. As such, MIFID II mandates the time-stamping obligations of all network elements and computers involving financial transactions.
This means that network and computer systems in a financial network must calibrate the clocks to measure activity on all internal systems involved in the financial transaction process. The required time-stamp granularity is 1 ms, with one millisecond maximum UTC divergence for non high-frequency trading (HFT) firms and one µs time-stamp granularity and 100 µs’ maximum divergence from UTC.
Protempis’s cost effective product portfolio includes a range of solutions including PTP grandmaster, boundary clocks and NTP time servers that enables clients in the financial services industry to achieve required time accuracy throughout the network.