Spread Networks

The first cable line, running {{convert|827|mi}} from Chicago (home to the Chicago Mercantile Exchange, where futures and options are traded) to Carteret, New Jersey (home to the Nasdaq data center), laid at a cost of US$300 million, was unveiled in June 2010.{{cite web|url=http://www.fiercetelecom.com/story/spread-networks-tightens-latency-along-chicago-new-york-route/2010-06-23|title = Spread Networks tightens up latency along Chicago to New York route|last = Buckley|first = Sean|date = June 23, 2010|accessdate = January 26, 2014|publisher = Fierce Telecom}} According to a Forbes article, the idea for the line first came to Dan Spivey in 2007: Spivey contracted with a New York hedge fund to devise a low-latency arbitrage strategy, wherein the fund would search out tiny discrepancies between futures contracts in Chicago and their underlying equities in New York. Although he successfully created the strategy, he was not able to execute it because he was not able to get access to the market's lowest-latency line. He spent some time researching the feasibility of building an ultra-low-latency line, and then looked for people willing to fund it and found Jim Barksdale. Construction was in full swing (but in extreme secrecy, to avoid getting scooped by competitors) by early 2009.

In 2011, Spread Networks expanded to Equinix NY4 IBX data center in Secaucus, New Jersey, 300 Boulevard East in Weehawken, New Jersey, and 165 Halsey Street in Newark, New Jersey.{{cite press release |author= |title=Spread Networks Announces Expansion of Low Latency Wave Service to Secaucus |url=https://newswire.telecomramblings.com/2011/02/spread-networks-announces-expansion-of-low-latency-wave-service-to-secaucus/ |location= |publisher=Spread Networks |date=2011-02-07 |access-date=2021-10-21}}{{cite press release |author= |title=Spread Networks Announces Expansion of Low Latency Wave Service to Weehawken |url=https://newswire.telecomramblings.com/2011/02/spread-networks-announces-expansion-of-low-latency-wave-service-to-weehawken/ |location= |publisher=Spread Networks |date=2011-02-28 |access-date=2021-10-21}}{{cite press release |author= |title=Spread Networks Announces Expansion of Low Latency Wave Service to Newark |url=https://newswire.telecomramblings.com/2011/03/spread-networks-announces-expansion-of-low-latency-wave-service-to-newark/ |location= |publisher=Spread Networks |date=2011-03-14 |access-date=2021-10-21}} In October 2012, Spread Networks announced latency improvements, bringing the estimated roundtrip time from 13.1 milliseconds to 12.98 milliseconds.{{cite web|url=http://www.lightwaveonline.com/articles/2012/10/spread-networks-improves-latency-on-chicago-new-york-route.html|title = Spread Networks improves latency on Chicago-New York route|date = October 8, 2012|accessdate = January 26, 2014|publisher = LIGHTWAVE}} In January 2014, Spread Networks announced that it had opened a point of presence at the NYSE Euronext trading center located in Mahwah, New Jersey.{{cite web|url=http://www.prnewswire.com/news-releases/spread-networks-opens-point-of-presence-at-nyse-euronext-mahwah-239606801.html|title = Spread Networks Opens Point of Presence at NYSE Euronext Mahwah: Fastest fiber optic network connection between New Jersey and Chicago now available at Mahwah|date = January 10, 2014|accessdate = January 26, 2014|publisher = PRNewsWire}}

Announced November 27, 2017, Zayo Group Holdings, Inc. ("Zayo") (NYSE: ZAYO) entered into a definitive agreement to acquire Spread Networks for $127 million in cash.{{cite web|url=https://www.zayo.com/news/zayo-acquire-spread-networks/|title = ZAYO TO ACQUIRE SPREAD NETWORKS|date = November 27, 2017|accessdate = August 29, 2019|publisher = Zayo}}{{cite web|date=November 27, 2017|title=Zayo to buy Spread Networks for $127 million in cas|url=https://www.lightwaveonline.com/business/mergers-acquisitions/article/16673519/zayo-to-buy-spread-networks-for-127-million-in-cash|publisher=Lightwave / Endeavor Business Media, LLC|accessdate=August 29, 2019}}

Spread Networks uses fiber optic cables along a route as close to straight as possible to connect the Chicago area with the New York area, specifically connecting Chicago (home to the Chicago Mercantile Exchange) to Carteret, New Jersey (home to the Nasdaq data center). According to their website, the network is monitored continuously and all parts of the network are driven daily to guarantee reliability and proactively fix problems. They also offer colocation facilities for servers at Chicago, Carteret, and Cleveland, all along the line. Their estimated roundtrip time along the dark fiber line (from Chicago to Carteret) is 13 milliseconds.{{cite web|url=http://spreadnetworks.com/products/ultra-low-latency-services/carteret-to-chicago-dark-fiber-%E2%80%93-1300-milliseconds-roundtrip/|title = Carteret to Chicago Dark Fiber – 13.00 milliseconds roundtrip|publisher = Spread Networks|accessdate = January 26, 2014}} Their wave service lines promise roundtrip times of about 14.1-14.2 milliseconds,{{cite web|url=http://spreadnetworks.com/media/11244/wavelength_latencies_chicago_to_nj_12_2013a.pdf|title = Spread Networks Latencies for Ultra Low Latency Services|publisher = Spread Networks|accessdate = January 26, 2014}} down from about 14.6 milliseconds in 2011.{{cite web|url=http://www.wallstreetandtech.com/it-infrastructure/spread-networks-clocks-latency-under-147/229400415|title = Spread Networks Clocks Latency Under 14.75 Milliseconds|last = Schmercken|first = Ivy|date = March 28, 2011|accessdate = January 26, 2014|publisher = Wall Street and Tech}}

According to a Wired article, the estimated roundtrip time for an ordinary cable is 14.5 milliseconds, giving users of Spread Networks a slight advantage. However, because glass has a higher refractive index than air (about 1.5 compared to about 1), the roundtrip time for fiber optic cable transmission is 50% more than that for transmission through the air. Some companies, such as McKay Brothers, Metrorede and Tradeworx, are using air-based transmission to offer lower estimated roundtrip times (8.2 milliseconds and 8.5 milliseconds respectively) that are very close to the theoretical minimum possible (about 7.9-8 milliseconds).

• Flash Boys: A Wall Street Revolt by Michael Lewis
• The Hummingbird Project

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• {{official website}}

Category:Fiber-optic communications

Category:Internet technology companies of the United States

Category:2017 mergers and acquisitions

Category:Financial technology companies