What factors are contributing to the sudden 30% increase in latency for Nasdaq's INET trading platform this week?

Introduction

The sudden 30% increase in latency for Nasdaq's INET trading platform this week is a critical issue that demands immediate attention and thorough analysis. As we delve into this problem, we'll follow a systematic approach to identify, validate, and address the root cause while considering both short-term fixes and long-term implications for the platform's performance and reliability.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to a recent system change. Has there been any significant update or deployment to the INET platform in the past week?

Why it matters: Recent changes often correlate with performance issues. Expected answer: Yes, there was a minor update to the order routing system. Impact on approach: If confirmed, we'd focus on the update's impact on latency.

• Considering the scale of the issue, I'm wondering about the distribution of the latency increase. Is this 30% increase consistent across all trades, or are we seeing spikes in specific scenarios?

Why it matters: Helps narrow down potential causes and affected components. Expected answer: The increase is more pronounced during high-volume trading periods. Impact on approach: We'd investigate scalability issues and load handling.

• Given the critical nature of INET, I assume there's constant monitoring. Have there been any unusual patterns in system resource utilization (CPU, memory, network) coinciding with the latency increase?

Why it matters: Resource constraints often contribute to performance degradation. Expected answer: There's been a noticeable increase in CPU usage on certain servers. Impact on approach: We'd focus on optimizing the most resource-intensive processes.

• Considering potential external factors, has there been any significant change in trading volumes or patterns on the Nasdaq exchange this week?

Why it matters: External factors can sometimes explain performance shifts. Expected answer: Trading volumes have been within normal ranges. Impact on approach: If confirmed, we'd shift focus to internal system issues.