Batch Processing Latency

Batch processing latency is the time delay introduced when a system waits to group multiple transactions together before processing them as a single batch. This approach is commonly used to optimize network throughput and reduce per-transaction costs.

While beneficial for overall efficiency, it introduces a delay for individual users who must wait for the batch to be completed and broadcast. In fast-moving derivative markets, this delay can be problematic, requiring a careful balance between batch size and acceptable latency levels for the traders involved.