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Careful Redundancy and Re-Purposing Can Improve Trade Execution

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Looking at what systems to switch off and how take apart infrastructures to optimize resources and hardware are the best ways address undue complexity of electronic execution infrastructures, states Bob Mudhar, partner at Citihub Consulting, who will be on a panel covering issues for electronic execution infrastructures at the Intelligent Trading Summit to be hosted by A-Team Group in London on 2nd February.

“Similar functions can be re-factored to stateless components,” says Mudhar. “Then run the components in farms and optimize the code paths and hardware. Stop performing any function for which there is no commercial payoff.”

Continually building systems means it is rare that any system gets switched off, according to Mudhar. Systems also are re-purposed for functions that are different than what they were meant for, he adds. “Derivatives platforms borrow from equity platforms and then build unnecessary co-dependencies,” says Mudhar, giving an example.

With appropriateness and avoiding duplication in mind, Mudhar advises that firms should adjust their trading infrastructures to… “off load anything they don’t need to be doing to a service. Focus on performing business functions the best they can, with constant improvement.”

This requires having “a fast way back from each new iteration to the last good one,” adds Mudhar. “This means they can take risks with new changes because going back to a last-known good state is reliable and predictable.”

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