A Faster Line Between Chicago and Tokyo: What the McKay Brothers–Go West Link Means for Traders and Exchanges

Shorter, quieter connections — and what that means right away

McKay Brothers and Go West announced plans to deploy a private network aimed at cutting communication delays between Chicago and Tokyo. For traders and market operators, the plain effect is simple: information and orders move more quickly and with less jitter. That changes how fast automated strategies can react to price moves across far‑flung markets.

This isn’t about small upgrades to an existing link. The partners are pitching a dedicated, optimized path — not a public internet route — so customers can expect steadier, lower‑latency service than they get from shared networks. For anyone who runs fast trading systems, even a small, reliable trimming of delay can be the difference between a profitable arbitrage and a missed opportunity.

How the new route will shave milliseconds off trades: fiber design, routing and collocation choices

When firms talk about lower latency between two cities, the changes usually fall into three buckets: the physical route, the kit on the line, and where servers sit at each end.

First, route length matters. A more direct fiber path shortens the distance signals travel. The partners say they will use an optimized route and avoid extra detours and intermediary network stops that add delay.

Second, the technology on the fiber matters. Modern dense wavelength systems push more data on each fiber while using fewer repeaters and faster optical electronics. The new service is likely to lean on high‑speed optics, cleaner amplification and fewer network hops — all of which cut the time it takes for a light pulse to go from Chicago to Tokyo.

Third, where you place compute and how you connect it is key. Low‑latency customers want tight colocations at endpoints and direct cross‑connects to exchanges, matching engines and data feeds. A private link that ties into major colocation hubs at both ends will make it easier for firms to place their matching engines and market data processors where they matter most.

Finally, network handling and software make a measurable difference. Dedicated routing, hardware timestamping and packet acceleration reduce jitter and variance. For traders, predictability is nearly as valuable as raw speed: a steady, slightly faster link can be more useful than a faster but erratic one.

Why lower latency matters for HFT, arbitrage and market data buyers

Firms that run high‑frequency strategies care about latency in two ways: execution speed and information speed. Execution speed determines which orders reach the matching engine first. Information speed governs how quickly a trader learns about price moves in another market and can act on them.

A dedicated Chicago–Tokyo route reduces the time gap that separates U.S. and Japanese markets. That shrinks the window for cross‑market arbitrage, letting firms pick off small price differences before they vanish. Market makers can update quotes more quickly and reduce their risk exposure, which tends to tighten bid‑ask spreads.

For firms that rely on market data feeds rather than colocating, the new link raises the bar. Those with access to the fastest path will gain an edge. That creates pressure on competitors to buy faster connectivity or restructure strategies toward slower‑but‑broader approaches.

Exchanges and trading venues should see mixed effects. Venues that are easy to reach from the new route could draw more volume, improving liquidity and fee revenue. Conversely, venues that sit off the fast path may lose some flow, especially for tiny, latency‑sensitive trades. Over time, this can nudge order routing patterns and influence where liquidity pools form.

Finally, the move nudges the broader market structure. If advanced connectivity becomes a staple, we may see more firms invest in co‑located infrastructure, greater specialization among data vendors, and expansion of ultra‑low latency services as a commercial product rather than a niche perk.

How the service will be sold and when customers can expect access

The partners plan to offer a range of products aimed at professional clients. Expect a top tier sold as a premium, ultra‑low latency circuit for high‑frequency shops and market makers, plus managed connectivity and lower‑cost options for firms that want reliable but less extreme performance.

Commercial terms will likely follow familiar patterns: higher prices for guaranteed, dedicated capacity and multi‑year contracts for the lowest latencies. Options such as dark fiber leases, burstable wavelengths and direct cross‑connects into colocation sites are standard in this segment and will probably appear in their catalog.

On timing, the partners expect a phased rollout. Initial test routes and early customer pilots often come first, followed by commercial offerings once the physical path and peering arrangements are in place. For most clients, that means planning months ahead rather than making immediate changes to production systems.

Rivals, regulators and things to watch next

Competitive pressure is clear. Other network providers and data center operators will respond with their own latency plays, pricing tweaks or partnerships. The result is likely to be more choice but also faster commoditization of mid‑tier latency products.

From a regulatory and market‑structure view, watchdogs will watch how access is given. A private route that gives certain firms faster or cheaper access to market data and order flow can raise questions about fairness and the fragmentation of liquidity. Exchanges and operators will need to show that access is non‑discriminatory where rules demand it, and firms should expect scrutiny if the new link shifts meaningful volume patterns.

In short, the McKay Brothers–Go West tie‑up is an infrastructure story with direct market consequences. It’s not revolutionary by itself — faster routes and premium links are a known force in modern markets — but it nudges the competitive landscape and raises the stakes for anyone who trades across time zones.