RESE-Low Latency Research

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Special Report: Connecting to Today’s Fast Markets

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Low latency connectivity has enjoyed a resurgence of interest as high-performance trading architectures become a reality. Early interest in the low-latency ‘vision’ may have been interrupted by the global financial crisis, but no matter: low latency is back, and providing the catalyst for the explosion in high frequency trading.

As liquidity continues to fragment – in the US and globally – electronic trading operations are demanding connectivity to a broader array of execution venues. As well as traditional exchanges, traders today need access to alternative trading systems, including electronic communications networks, dark pools and multilateral trading facilities (MTFs). Securing and maintaining a robust, high-performance connectivity solution is key to providing comprehensive market access.

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19 Feb 2010

New Cinnober White Paper: Lowering Door-to-Door Latency to 25 Microseconds within 18 months

New Cinnober White Paper: Lowering Door-to-Door Latency to 25 Microseconds within 18 months

Today speed is crucial to any trading venue that wants to stay competitive. At the same time, with high-frequency trading gaining an increasing share of overall volumes, the ability to manage rising transaction volumes is also a necessity.

In 2007, Cinnober published a white paper which established some best practices for measuring latency in financial markets, and publishing the results in a clear and understandable fashion. Cinnober also disclosed benchmark figures of its own trading platform with a level of transparency seen neither before nor since, showing that the context of the testing environment is of the utmost importance. Since that paper was published, latency has become a widely-used metric.

In this new white paper, Cinnober continues to explore the measurement of latency and, more importantly, what can be done to minimize it. The paper details the configurations used in recent benchmark tests on a full-blown Cinnober TRADExpress Trading System, showing how these affect the trade-off between latency and throughput. In these tests, the door-to-door latency achieved was 286 microseconds with a business logic latency of 138 microseconds. Cinnober also publishes its roadmap to further reduce latency, the goal of which is to go below 80 microseconds door-to-door within a year and 25 microseconds within 18 months.

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18 Nov 2009

Issue 7: Low Latency - Are You Performing? Now Available For Download

Issue 7 of A-Team Group’s contributed thought leadership quarterly Low Latency - Are You Performing? is now available for download.

Low latency technologies continue to be deployed by the financial markets - driven by the need to adopt them simply to stay in the trading game, and hopefully win at it. But low latency covers a wide range of components - from networks, to server hardware, to operating systems and middleware, to middleware, and to applications. In the low latency equation, there are many moving parts.

And low latency has moved beyond the task of delivering market data to algo trading engines, and coping with surging market volumes. It is now a requirement for every link in the trade execution and processing chain, even beginning to have relevance to risk management operations. In short, low latency is the new normal.

With that in mind, check out the round table inside to get the views of several different players in the marketplace - each brings a different perspective, whether it be high performance messaging, low latency analytics, market data delivery, global order routing or infrastructure issues.

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26 Jun 2009

Special Report: Complex Event Processing

Download this special report for FREE now! Click the link below.

Over the past couple of years, Complex Event Processing has emerged as a hot technology for the financial markets, and its flexibility has been leveraged in applications as diverse as market data cleansing, to algorithmic trading, to compliance monitoring, to risk management. CEP is a solution to many problems, which is one reason why the emerging marketplace is growing, with many vendor options to choose from.

But CEP is not a solution in itself, and so technologists need to concern themselves with how to integrate it within a complete application architecture, how it can best be leveraged, and how to streamline development and deployment. And with multiple vendor choices, choosing the right CEP approach for the job is an important, and early, activity for firms looking to adopt it.

Expect CEP offerings to become more complete in terms of functionality - especially in the event modelling area - and to also exploit technologies that will boost their performance. And expect CEP to become further embedded across the entire trade processing and operations chain. The scenario of CEP becoming an infrastructure component - just like a database or messaging platform is now - is a near certainty. But as for when that will happen is open to debate. The entry into the market by IT heavy hitters like IBM and Oracle - and Microsoft is on its way - will likely drive the infrastructure-level adoption of CEP.

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18 Jun 2009

Issue 6: Low Latency - Are You Performing? Now Available For Download

Issue 6 of A-Team Group’s contributed thought leadership quarterly Low Latency - Are You Performing? is now available for download.

Even as the financial markets undergo unprecedented turmoil, the drive to lower latency shows no sign of abating. Why is this? Put simply, it’s because low latency technologies enable those competing in the financial markets - whether they be sell-side firms, buy-side firms, exchanges or alternative trading venues - to run ahead of the pack. And to win. Such concepts are explored in the round table debate inside, and we thank those that participated for their insight and wisdom.

Also inside are two takes on the world of low latency. Ian Salmon from Fidessa explores how latency impacts the process of order routing, especially seeking out best execution in new fragmented markets. In short, without low latency architectures, these new markets could probably not exist.

Exploring latency from a technology angle is Neal Weiss of Sun Microsystems. Until recently, storage and latency have been at odds with one another. Now, with the advent of solid state disks, that divide is being overcome.

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19 Feb 2009

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