Colt Technology Services and Celoxica are making final preparations to bring an FPGA based service that normalises European data feeds with consistent single-digit microsecond latency to market next month. The first content provider Colt is connected to, and will provide normalised data from, is Deutsche Börse CEF Ultra+ Eurex, a source of Eurex derivatives instruments. Following go live of the Eurex market data feed, the companies plan to expand the service across additional derivatives markets and other asset classes over time.
The hardware-based service combines Celoxica field programmable gate array (FPGA) technology and an application programming interface (API) provided for C++ programming with Colt’s high bandwidth global network and connectivity infrastructure. The result gives members and non-members of exchanges access to normalised low latency market data feeds in a fast and more deterministic manner than software-based alternatives. The solution is being offered as part of Colt’s market data portfolio and enables firms to consume feeds with minimal development time and reduce time to market, making the service cost-effective.
Andy Young, head of global sales for capital markets at Colt, says the data feed solution is filling a gap in the market and is a natural partnership between Colt and Celoxica, which already have joint customers. Colt’s global presence is also expected to provide maximum opportunity for take-up of the FPGA based service.
Young explains: “For the past 18 months, there has been demand from high-frequency traders for an FPGA solution that will help them take advantage of European derivatives. But not all firms have the in-house resource or money to build out their own FPGA platforms, so we are offering an FPGA solution as a service that is built on a subscription model and allows a broad range of trading firms to leverage the technology without capital expenditure.”
Lee Staines, global head of sales at Celoxica, adds: “We have commoditised FPGA technology and with Colt can provide a high-performance service to any firms interested in normalised and fast market data.” Considering how the solution can be scaled, Staines says: “We have the ability to scale this step by step. Colt has infrastructure and services globally, and we have feed handlers that support a number of asset classes. APIs normalise data feeds and insulate users from changes made on the exchange side, so growing with us should be fairly straightforward for customers.”
Customer testing of the solution is well underway and demand from firms across Colt’s global network for the ability to trade the European derivates market is rising. Staines concludes: “With a market data feeds normalisation solution that offers performance, ease of use and the right price point, we expect to attract both existing and new customers.”