In today’s financial markets, a fraction of a second can mean millions in lost opportunities. As trading environments become increasingly digital, legacy video infrastructure is emerging as a liability—introducing costly delays, limiting access to critical data, and complicating compliance.
To better understand how modern IP video solutions are reshaping financial services, we spoke with Steven Forrest, Director of Business Strategy & Industry Innovation at VITEC, a company specializing in low-latency video solutions for high-performance industries, including financial services.
QFinancial trading relies on speed. How does video play a role in that equation?
Forrest: It can play a pretty significant role in a sector in which time really does matter. Let me give you an example. A few years ago, a trading firm I worked with was unknowingly losing its competitive edge because of video latency. Their traders were watching financial news feeds on a legacy coaxial system with a delay of about 7-10 seconds. In a market where high-frequency traders operate in microseconds, that delay was costing them millions in lost opportunities.
Once they switched to an IP-based solution with latency under 500 milliseconds, they could react to market shifts in real time, executing trades faster than before. The impact was immediate.
This isn’t just about being fast—it’s about being first. It is also about being aware and on top of the latest developments. In financial markets, video isn’t just a communication tool—it’s a competitive asset. Firms that prioritize real-time access to information are the ones that consistently achieve alpha—outperforming the market.
Editorial Note: A report from the U.S. Securities and Exchange Commission (SEC) details how latency impacts algorithmic trading performance and the importance of low-latency systems in maintaining a competitive advantage. (sec.gov)
QWhat are the biggest challenges financial firms face in video infrastructure today?
Rushton: Like most areas that integrate technical performance to achieve financial outcomes, the issues that must be addressed are often multi-disciplinary in nature. You have to align technologies — like video — to business strategies. One global investment firm I worked with was struggling with three major challenges:
- Delays in video transmission that slowed decision-making.
- A lack of synchronization across global trading floors, which meant some locations received updates faster than others.
- Compliance blind spots, where auditors couldn’t verify if traders had received required updates before executing trades.
This isn’t a unigue situation—many financial institutions still use legacy video systems that weren’t built for today’s real-time digital economy. That is why it is so important for technical and non-technical decision-makers alike to appreciate the difference between modern IP video solutions and traditional coaxial systems; it is night and day.
Moreover, the potential for risk is not always obvious. We recently worked with a major asset management firm after it took a big hit when the team was penalized for non-compliance triggered by an outdated video system. The audit process revealed that traders had access to critical news updates at different times depending on their location. This created an uneven playing field internally exposing the firm to liability.
By adopting a centralized, IP-driven solution, the firm eliminated delays and inconsistencies while giving their compliance team real-time visibility into content distribution across their entire global operation.
Editorial Note: A study from Deloitte highlights how outdated technology infrastructures can hinder compliance efforts, making it more difficult for financial firms to meet evolving regulatory standards. (deloitte.com)
QHow can traders and compliance teams adapt to IP video?
Forrest: One of the biggest misconceptions about upgrading to IP video is that it’s only a technical change. The fact is that it also requires a shift in workplace culture and workflow adaptation.
When firms move to real-time, IP-based video, traders must adjust how they interact with information. Instead of watching delayed market updates on traditional screens, they’re seeing live feeds integrated into their trading dashboards. This requires them to trust new workflows, respond more quickly, and rely more on automation.
Compliance teams also undergo a transition. With IP video automatically logging who viewed what and when, firms can replace manual tracking with AI-powered monitoring. While this increases transparency and auditability, it also requires teams to adapt their internal review processes to make the most of real-time compliance oversight.
The firms that adapt fastest tend to be the ones that not only upgrade their technology but also provide training and process adjustments that allow employees to fully leverage the advantages of real-time video intelligence.
QWhat’s next for video technology in financial markets?
Forrest: IP video creates a wide array of opportunities to better manage risk while driving new ways to generate revenues or establish competitive differentiation.
On the risk management front, for instance AI-powered compliance monitoring of video utilization in the trading process automates regulatory oversight in real time, flagging — and then mitigating — potential violations as they happen. When IP video technology is combined with other rapidly evolving innovations — with 5G (and soon 6G) as well as edge computing and other emerging technologies — firms will be able to distribute video intelligence instantly across trading floors, eliminating even milliseconds of delay. This not only protects firms from trading behind the market. It also lays the foundation for better and quicker analysis when executing trading strategies.
Achieving alpha isn’t just about having the fastest execution—it’s about having the clearest, most actionable intelligence at the right time and at the right place. Firms that fully integrate real-time video into their decision-making process will be the ones defining the future of trading.
