Interior networks versus exterior networks

When looking at Figure 5.8, we can observe two different levels of the network. There is the level of network talking to the outside world using the prior protocols, and there is the networking within the company network (interior network). The following diagram illustrates the main difference between the exterior and internal networks in trading and exchange networks:

Figure 5.17 – Interior network and exterior network

A trading server communicating with the risk server uses the interior network, while the trading system on the left side of the preceding diagram will be connected with the exchange through the external network.

The internal network will be for the following activities:

• Internal market data distribution
• Signal sharing
• Order entry

It is essential in this network to minimize hops between hosts (servers). The best system will be a system where there is a segue into systems...