Wall Street Is Replacing Glass With Air: How Much Latency Does Hollow-Core Fiber Actually Save?
A new network being developed around New Jersey’s financial-market infrastructure will use hollow-core fiber — optical cable engineered so most of the light travels through air instead of solid silica glass. The headline claim is dramatic: signals can move roughly 47% faster. But what does that translate to in actual microseconds, and who outside high-frequency trading should care?
Financial networks have spent decades fighting for microseconds. Routes have been shortened, microwave towers built, equipment colocated beside exchanges and network hardware stripped of every unnecessary processing step. Hollow-core fiber attacks something much more fundamental: the speed at which the light itself moves through the cable. Instead of guiding the signal through solid silica, it confines most of the optical field inside an air-filled core.
How Much Faster Is It Really?
On an equal-length route, hollow-core fiber cuts propagation latency by roughly one-third.
Conventional single-mode glass fiber has a propagation delay of approximately 4.9 microseconds per kilometer. Modern hollow-core fiber is closer to 3.33–3.36 microseconds per kilometer.
The difference is approximately 1.55 microseconds per kilometer — or around 2.5 microseconds for every route mile, one way.
Why Light Slows Down Inside Ordinary Fiber
The light propagates through silica glass with an effective refractive index around 1.46–1.47, substantially below the speed of light in vacuum.
Most of the optical field propagates through the hollow air-filled core, allowing the signal to travel much closer to the speed of light in vacuum.
What That Means in Actual Microseconds
Those are approximate one-way propagation savings assuming equal route mileage. Round-trip savings are roughly twice those values.
Same Route: Glass vs Hollow-Core
| Route Length | Standard Glass One Way | Hollow-Core One Way | One-Way Saving | Approx. RTT Saving |
|---|---|---|---|---|
| 1 mile | ~7.9 µs | ~5.4 µs | ~2.5 µs | ~5.1 µs |
| 5 miles | ~39.4 µs | ~26.8 µs | ~12.6 µs | ~25.3 µs |
| 10 miles | ~78.9 µs | ~53.6 µs | ~25.3 µs | ~50.5 µs |
| 20 miles | ~157.7 µs | ~107.2 µs | ~50.5 µs | ~101 µs |
| 30 miles | ~236.6 µs | ~160.8 µs | ~75.8 µs | ~152 µs |
| 50 miles | ~394.3 µs | ~268.0 µs | ~126.3 µs | ~253 µs |
| 100 miles | ~788.6 µs | ~535.9 µs | ~252.7 µs | ~505 µs |
Why Wall Street Cares About 25 Microseconds
Twenty-five microseconds sounds meaningless to a person clicking a website.
In an electronic trading system, it can be enormous.
Market-data feeds travel from trading venues to algorithms. Algorithms react. Orders travel back toward exchanges. Competing firms may be attempting to react to the same price movement at nearly the same moment.
In that environment, shaving tens of microseconds from the physical route can materially alter who receives information or reaches a venue first.
What McKay Brothers Is Building in New Jersey
McKay Brothers and Relativity Networks announced their partnership on November 2, with the initial focus on interconnecting important financial-market locations in New Jersey.
McKay has purchased Relativity’s ChronoCore anti-resonant hollow-core fiber for commercial deployment and plans to offer both dedicated fiber-pair IRUs and managed connectivity services from 10 Gbps through 400 Gbps.
The planned network also includes branches toward data-center development projects near financial corridors, connecting the financial-services use case with growing AI training and inference infrastructure.
The Route Still Matters as Much as the Fiber
A faster transmission medium cannot rescue a terrible route.
Financial-network engineers have spent years optimizing physical path length because every unnecessary mile adds propagation delay.
Hollow-core fiber changes the tradeoff because it can travel a longer distance while maintaining the same propagation time.
For example, if a conventional route is 10 miles long, a hollow-core route could be roughly 14.7 miles and still have approximately the same propagation time.
That can be strategically valuable because the geographically shortest path is not always the easiest or cheapest path to construct.
The Real Competition Is Not Just “HCF vs Fiber”
| Medium | Propagation Speed | Capacity | Operational Characteristics | Typical Fit |
|---|---|---|---|---|
| Standard SMF | ~204,000 km/s | Extremely high | Mature / widespread | Almost all ordinary telecom networks |
| Hollow-core fiber | Near air/vacuum speed | Very high | Newer deployment ecosystem | Latency-sensitive fiber routes |
| Microwave / millimeter wireless | Near air speed | Lower than fiber | Weather / spectrum / towers | Extreme latency trading routes |
HCF Tries to Combine Two Traditionally Separate Advantages
What Wireless Does Well
- Signals propagate through air near light speed.
- Routes can sometimes be geographically straighter.
- Extremely attractive when microseconds dominate economics.
What Fiber Does Well
- Massive capacity.
- Predictable operation.
- Physical security.
- No RF spectrum requirement.
- Excellent weather resistance.
Hollow-core fiber attempts to bring propagation speed much closer to wireless while retaining the fundamental operational model and bandwidth advantages of a physical optical cable.
The Technology Has Moved Beyond a Laboratory Fiber
24 Fibers in 10 mm
Prysmian and Relativity demonstrated a 24-fiber hollow-core cable in a 10-millimeter package, addressing the practical need for usable cable density.
350 ft/min
The same cable was successfully installed into standard microduct during testing at Dura-Line’s Tennessee facility at jetting speeds up to 350 feet per minute.
$40M Hyperscaler Order
Relativity announced a $40 million follow-on order from an unnamed hyperscaler after the customer tested ChronoCore between two data centers.
Live Colt Network
Colt, Relativity and Network Planning Solutions installed and validated ChronoCore between two existing Colt network locations in central London.
Financial Deployment
McKay Brothers purchased ChronoCore for planned commercial networks serving New Jersey financial-market infrastructure.
Multi-Terabit HCF
Microsoft research has demonstrated real-time multi-terabit transmission over long HCF distances, reinforcing that low latency does not require giving up high-capacity optical transport.
Latency Is Not the Only HCF Advantage
| Characteristic | Standard Single-Mode Fiber | Modern Hollow-Core Fiber | Why It Matters |
|---|---|---|---|
| Propagation delay | ~4.9 µs/km | ~3.33–3.36 µs/km | Lower network latency |
| Chromatic dispersion | ~17 ps/nm/km typical | Substantially lower | Simplifies high-speed transmission |
| Optical nonlinearity | Material interaction limits power | Orders of magnitude lower | Higher optical launch powers become possible |
| Attenuation | ~0.17–0.2 dB/km typical modern SMF | Recent HCF demonstrations below 0.1 dB/km | Potentially longer amplifier spacing |
| Deployment maturity | Extremely mature | Rapidly developing | Cost, tooling and field experience still matter |
The Most Interesting New Research Says: Don’t Replace Everything
A new academic review published November 5 examines hollow-core fiber from a network-design perspective rather than simply comparing one kilometer of HCF with one kilometer of ordinary fiber.
Its central conclusion is important: selective deployment can capture a significant share of HCF’s network-wide benefit without rebuilding every link.
In its edge-data-center consolidation studies, upgrading only about 6% to 24% of total network fiber length to HCF could produce large benefits, including scenarios with as many as 50% fewer required edge data centers.
Other modeled use cases examined selective HCF deployment for higher-power optical transmission, bidirectional capacity scaling and coexistence with quantum channels.
That Strategy Makes Particular Sense in Financial Networks
Not every segment of a trading network has equal economic value.
A link between two administrative offices does not need the same propagation speed as a route connecting a market-data source to a trading engine.
Even within a low-latency network, only a few critical corridors may dominate total propagation delay.
Exchange Corridors
Physical routes connecting major trading venues and financial data centers can have direct economic sensitivity to microseconds.
Market-Data Paths
Faster propagation of market information can matter even before the order path is considered.
Critical DCI Segments
AI and distributed compute clusters can use HCF to increase physical separation while staying inside a fixed latency budget.
What About an Ordinary Enterprise?
For most businesses, hollow-core fiber is not going to make Microsoft 365, Salesforce or ordinary Internet browsing noticeably faster.
A 25-microsecond propagation improvement is tiny compared with application processing, Internet routing, database queries, cloud workloads and other delays commonly measured in milliseconds.
| Application | HCF Value | Why |
|---|---|---|
| High-frequency trading | Extremely High | Single-digit microseconds can have economic value. |
| Exchange / market-data transport | Very High | Propagation is an important part of the latency budget. |
| AI cluster interconnect | Potentially High | Lower latency can allow compute sites to be placed farther apart. |
| Edge computing | Potentially High | A fixed latency radius can cover a larger geographic area. |
| Cloud DCI | Use-case dependent | Useful where application synchronization is latency sensitive. |
| Industrial control | Specialized | Could matter in strict deterministic-latency applications. |
| Ordinary enterprise Internet | Low | Microseconds are usually overwhelmed by application and Internet latency. |
| Branch-office connectivity | Low | Cost, reliability and redundancy usually matter far more. |
For AI, the Advantage Can Be Geographic Rather Than Merely Faster
The AI use case has a different economic logic from trading.
Data centers increasingly need to be built where large quantities of electrical power are available. That location may not be immediately beside an existing compute campus.
If hollow-core fiber reduces propagation delay by roughly one-third, two facilities can be placed farther apart while remaining inside the same network-latency budget.
The area accessible around a facility can therefore increase much more than the linear distance increase suggests.
HCF Does Not Remove the Rest of the Latency Stack
The propagation savings are real, but end-to-end latency still contains many other components.
| Latency Component | Does HCF Reduce It? |
|---|---|
| Propagation through fiber | Yes — substantially |
| Router forwarding | No |
| Switch processing | No |
| Serialization delay | No |
| FEC / DSP processing | Not inherently |
| Application processing | No |
| Exchange matching engine | No |
| Route mileage | No — physical route still matters |
Deployment Still Has Practical Friction
What Has Improved
- Attenuation has fallen dramatically.
- Commercial cable density has increased.
- Standard microduct installation has been demonstrated.
- Live carrier-network deployments now exist.
- Hyperscalers are placing commercial orders.
What Still Needs Attention
- Splicing procedures differ from conventional SMF.
- Testing and OTDR interpretation require HCF expertise.
- Connector and coupling losses matter.
- Field technician experience is much less mature.
- Commercial pricing remains less transparent.
- Supply ecosystem is much smaller than standard SMF.
The Price Is the Missing Public Number
Hollow-core fiber now has published deployments, commercial manufacturing partners and paying customers.
What it does not yet have is a broadly transparent commodity market comparable with ordinary G.652 or G.657 single-mode fiber.
That means a useful business case should not assume HCF costs 2×, 5× or 10× standard fiber without an actual quote.
What is one microsecond worth on this route?
×
How many microseconds can HCF remove?
vs.
What incremental cost does the HCF route require?
When the Economics Can Work
Microseconds Have Revenue Value
Trading is the clearest example because route performance can directly affect execution opportunities.
Facilities Can Move Farther Away
AI operators may gain access to cheaper land or scarce electrical power while maintaining a fixed latency target.
Fewer Edge Sites Are Needed
A larger latency radius can allow one site to cover geography that previously required several smaller facilities.
When It Probably Does Not
If application latency is measured in tens of milliseconds, saving 25 or 50 microseconds may be operationally irrelevant.
In those environments, a company will usually obtain far more benefit by improving route diversity, reducing application processing time, choosing a closer cloud region, increasing bandwidth or eliminating unnecessary network hops.
Selective Deployment May Be the Winning Strategy
The new November 2026 academic review provides perhaps the most practical road map.
Instead of assuming every conventional fiber strand must eventually become hollow-core, the researchers model hybrid networks where only selected high-value segments are upgraded.
Depending on the use case, substantial benefits appeared with only a fraction of the network converted.
Eight Questions Before Buying Hollow-Core Fiber
| Question | Why It Matters |
|---|---|
| What is the actual route mileage? | Propagation savings scale almost linearly with physical distance. |
| What is the competing SMF route mileage? | A significantly shorter conventional route can erase part of HCF’s advantage. |
| How much of current latency is propagation? | HCF cannot remove application, switching or processing delay. |
| What is one microsecond worth? | Determines whether the additional infrastructure cost can be justified. |
| Does the entire route need HCF? | Selective critical-segment replacement may capture much of the benefit. |
| What optics will be used? | Transponder/DSP latency can affect the end-to-end result. |
| Who will splice and certify it? | Field expertise is less widespread than conventional SMF. |
| What is the conventional alternative? | Compare HCF with shorter route, wireless, colocation and application redesign. |
Approximate propagation figures in this report use 4.9 µs/km for conventional single-mode fiber and 3.33 µs/km for hollow-core fiber. Actual end-to-end latency also depends on route length, optics, FEC, transponders, switches, routers, amplifiers, application processing and other network elements.
Hollow-Core Fiber Latency & Value Calculator
Enter the physical route and how much of it would use HCF. The calculator estimates one-way and round-trip propagation savings, accounts for a different HCF route length, and gives a rough indication of whether the saved latency is meaningful for the selected application.
Planning estimate only. The model calculates propagation from route mileage using approximately 4.90 µs/km for standard single-mode fiber and 3.33 µs/km for HCF. It does not model transponder, FEC, switch, router, amplifier, queueing or application latency. Commercial HCF costs are not assumed; enter an actual incremental project premium when available.
