Latency Analysis System for Financial Services

Project Overview


LANTERN, Latency analysis System for Financial Services, is a new network management technology being developed by TSSG. LANTERN is an application aware monitoring tool that will deliver detailed information on the latency-focussed capacity of the network to meet SLAs.

An Essential Tool for the Financial Network Manager

CDNetworks asserts that trading firms both small and larger are spending vast sums of money on their trading infrastructure in a bid to eliminate latency, citing revenue improvements of $100mn/annum for just shaving milliseconds off performance measures. 1

“In High Frequency Trading (HFT), a subclass of algorithmic trading, computers automatically initiate millions of trades within milliseconds. To reliably support HFT, financial institutions have built private ultra high-speed dedicated networks.”

Fundamentally LANTERN can provide assurance that latency sensitive applications are supported by the network and also provide an upper bound on the volume of latency sensitive traffic the network can support from end to end. As latency targets change, the bandwidth requirements of applications change along with the upper bounds on the network capacity.

The Toolkit

The Effective Bandwidth (EB) system profiles application traffic bandwidth requirements, given strict Quality of Service targets

The Effective Capacity (EC) system profiles a network path’s ability to support various application traffic, given strict Quality of Service targets.

Both the EB and EC systems are based on in-house Ph.d research. These systems will be supplemented by a suite of report generating tools and an intuitive front-end interface.

A Compelling Solution

LANTERN has evolved from deep sector research and expertise, based on the Ph.D work of Dr Alan Davy and being developed within the TSSG.  The team understands the importance of contextual data. LANTERN network intelligence is derived from algorithms that express application performance in the context of network capacity in real time. LANTERN is anti-granular. The EC and EB measures offer quick insight into current network performance and possible future issues. LANTERN is a low cost, resource friendly solution. It doesn’t need to capture every packet to ensure optimal provisioning.

Project Implementation


This product is based on Ph.d research developed by Dr Alan Davy . A researcher in the Emerging Networks Laboratory at TSSG. Alan is leading the development of this product and is supported a team of software engineers, operations staff, design and usability experts and business analysts.

The TSSG is an internationally recognised centre of excellence for ICT research and Innovation, carrying out a wide spectrum of industry-informed research.

Key Objectives

The technical objectives of the project are as follows:

  1. Implement and deploy the Effective bandwidth system for profiling Application traffic bandwidth requirements, given strict Quality of Service targets.
  2. Implement and deploy the Effective Capacity system for profiling network paths ability to support various application traffic, given strict Quality of Service targets.
  3. Implement and deploy an intuitive front-end interface suited to the end users requirements.
  4. Implement and deploy a suite of report generation tools suited to the end users requirements.

Project Achievements

A major financial services company has signed an agreement to license the outputs of the previous Enterprise Ireland funded project QoSPlan. This system implemented and deployed a beta Effective Bandwidth system. The system can profile application traffic and determine the bandwidth requirements of the traffic, given specific QoS targets on packet delay. LANTERN will build on this product by implementing the Effective Capacity system, and rolling out improved reporting and front end interfaces to suit the trial requirements.



Dr. Alan Davy


Telecommunications Software & Systems Group,
Waterford Institute of Technology,
Cork Road, Waterford,
t: 051 302970