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Medium · Networking & Systems · Quant Trader interview question · networking, multicast, unicast, market-data, systems
A major exchange is disseminating real-time market data (order book updates, trade executions, etc.) to 500 subscribers. These subscribers are high-frequency trading firms located in a data center collocated with the exchange. The exchange is deciding between using a unicast or multicast protocol for distributing this data. Why is multicast generally considered more network-efficient than unicast in this scenario?