Ultra Low Latency Trading
Whether you are a High Frequency Trader, a Market Maker or a Statistical Arbitrage Trader, ultra low latency is the key to winning your trade at the price you want before the stock price moves.
Algorithmic Trading Systems use techniques such as co-location, shortest path networks, and increasingly 10 Gigabit Ethernet interfaces and Field Programmable Gate Array (FPGA) technologies in order to minimize latency and gain a competitive edge.
A trading system analyzes market data from multiple Stock Exchanges, uses financial trading strategies to find trading opportunities, and uses an ultra low latency interface to get orders into the trading queue first. In order to reduce latency, it is necessary to push the decision making on trades to the Network Interface Card (NIC) which alleviates the need to involve the main system processor which would introduce undesirable delays in response time. This Network-Side Processing (where processing occur as close to the network interface as possible) is essential for the design of a truly ultra low latency system.
A solution based on FPGA technology has many advantages:
- Trade execution on an FPGA located close to the network’s physical interface eliminates the latencies caused by the host bus, the host processor and the operating system. This drastically improves trading response time.
- FPGAs provide wire-speed performance, allowing the execution of the part of the algorithm that detects and acts on trading opportunities almost instantaneously before others even notice the opportunity.
- FPGAs can be reprogrammed during operation allowing parameters and algorithms to be changed and updated to keep ahead of competitors.
- FPGAs are excellent at parallel processing enabling them to act on multiple trades simultaneously.
- FPGAs can be provided with a development framework that shortens the development cycle for customers and allow them to focus on development of their systems and proprietary algorithms.
AdvancedIO provides best of class ultra low latency 10 Gigabit Ethernet FPGA cards enabled with an easy to use application development framework. Our team’s expertise is honed from years of providing solutions for the Defense, Telecom, and Financial markets. Customers rely on our expertise to deliver superior products on time and on budget.